Morgan Stanley has filed with the SEC to launch a spot Bitcoin ETF, collaborating with Coinbase and BNY Mellon for custodial services.
Morgan Stanley, a major investment bank with $1.9 trillion in assets, has filed an S-1 application with the SEC to launch a spot Bitcoin ETF.
To manage the cryptocurrency, the firm will collaborate with Coinbase and BNY Mellon for custodial services. These partners will oversee the transfers necessary for the creation and redemption of ETF shares.
The proposed storage strategy follows institutional protocols, with most Bitcoins stored in cold wallets to reduce the risk of hacking. Coins will only be moved to trading wallets temporarily when shares are created or redeemed.
The filing also indicates that while custodial services will be insured, the coverage will be shared among clients and may not cover all potential losses.
Additionally, BNY Mellon will act as the administrator for the Morgan Stanley Bitcoin Trust and manage accounting and cash flows associated with the ETF.
In a recent statement, Jeff Pak, investment director at ProCap, highlighted that launching its own ETFs could benefit Morgan Stanley, even with modest returns. He noted that such a move reflects the firm's "foresight and boldness," enhancing its image as a progressive company and aiding in attracting talent.
Morgan Stanley's Growing Crypto Involvement
The bank has been expanding its footprint in the cryptocurrency sector. In 2021, it became the first major U.S. financial institution to offer its wealthy clients access to a Bitcoin fund from NYDIG.
By 2024, Morgan Stanley permitted its advisors to recommend ETF products linked to Bitcoin from BlackRock and Fidelity. The firm has also initiated plans to enable trading of digital assets through the E*Trade brokerage platform.
Furthermore, in October 2025, analysts from Morgan Stanley suggested that investors could allocate up to 4% of their portfolios to cryptocurrencies.
