Morgan Stanley files to launch spot bitcoin ETF

Morgan Stanley has filed a registration statement with the US Securities and Exchange Commission, positioning itself to launch a spot bitcoin (BTC $93,789.55) exchange-traded fund called the Morgan Stanley Bitcoin Trust, according to a Form S-1 submitted on Jan. 6.

The trust is sponsored by Morgan Stanley Investment Management and is structured as an exchange traded fund designed to track the price of bitcoin, net of fees and expenses. It would hold bitcoin directly rather than using derivatives or leverage, and its net asset value would be calculated daily using a designated bitcoin pricing benchmark derived from activity on major spot exchanges. The fund would be passive and would not attempt to trade bitcoin based on market conditions.

Shares would be created and redeemed only in large blocks by authorized participants, either in cash or in kind, with cash transactions executed through third-party bitcoin counterparties selected by the sponsor. Retail investors would be able to buy and sell shares on the secondary market through brokerage accounts. If approved, the fund’s shares are expected to list on a national securities exchange under a ticker symbol that has not yet been disclosed.

The filing follows a rapid expansion of spot bitcoin ETFs in the U.S. market over the past two years; SEC approval is required before the fund can list.

Key Topics

Crypto, Morgan Stanley, Bitcoin, Bitcoin Trust, Spot Bitcoin Etf