Investment bank Morgan Stanley, with assets of $1.9 trillion, has submitted an S-1 filing to the SEC for a spot Bitcoin ETF.
To store the cryptocurrency, the firm plans to utilize the custodial services of Coinbase and BNY Mellon. These companies will also handle the transfers involved in the creation and redemption of ETF shares.
The storage model outlined in the document adheres to institutional standards, with the majority of the Bitcoins held in cold wallets to minimize hacking risks.
Coins may only be temporarily moved to trading wallets during the creation or redemption of shares.
The prospectus also mentions that custodial services will be insured, but coverage will be shared among clients and may not encompass all potential losses.
BNY Mellon will additionally serve as the administrator for the Morgan Stanley Bitcoin Trust, transfer agent, and custodian for fiat funds. The bank will manage accounting, shareholder registries, and cash flows related to ETF operations.
In early January, ProCap's investment director, Jeff Pak, stated that Morgan Stanley would benefit from launching its own ETFs even if their returns are modest. He believes that having such a product signals "foresight and boldness" from the asset manager, creating an image of a progressive company, which is crucial in attracting talented employees.
Morgan Stanley and the Crypto Market
The bank has been steadily increasing its presence in the crypto market. In 2021, Morgan Stanley became the first major financial institution in the U.S. to offer its wealthy clients access to the Bitcoin fund from NYDIG.
In 2024, the firm allowed advisors to recommend ETF structures based on the first cryptocurrency from BlackRock and Fidelity. Later, the financial giant began preparations to launch trading of digital assets on the E*Trade brokerage platform.
Notably, in October 2025, Morgan Stanley analysts recommended allocating up to 4% of portfolios to cryptocurrencies.