Morgan Stanley Files With SEC For Spot Bitcoin ETF

"Morgan Stanley has filed with U.S. regulators to launch a spot bitcoin exchange-traded fund, marking the first time a major U.S. bank has sought approval to issue an ETF tied directly to the price of bitcoin. The filing, submitted to the Securities and Exchange Commission, proposes the Morgan Stanley Bitcoin Trust, an exchange-traded fund designed to track the price of bitcoin, net of fees and expenses."

"If approved, the fund would hold bitcoin directly rather than relying on futures, derivatives, or leverage, according to the registration statement. The move places Morgan Stanley alongside asset managers that have dominated the bitcoin ETF market since regulators approved the first U.S. spot products in early 2024. Those funds now manage more than $120 billion in assets, representing a meaningful share of bitcoin's total market value. Much of that growth has flowed into bitcoin-only products from firms such as BlackRock and Fidelity."

"Until recently, U.S. banks largely limited their role to custody and brokerage services, citing regulatory uncertainty and risk controls. That stance has begun to change as federal agencies clarified how banks can engage with digital assets. In December, the Office of the Comptroller of the Currency said banks may act as intermediaries for crypto transactions, narrowing the divide between traditional finance and digital markets. The SEC has also adjusted listing standards for spot crypto ETFs, smoothing the approval path for new issuers."

Morgan Stanley submitted a registration statement to the SEC proposing the Morgan Stanley Bitcoin Trust, a spot ETF that would hold bitcoin directly, net of fees and expenses. The fund would be sponsored by Morgan Stanley Investment Management and allow shares to be created and redeemed in large blocks by authorized participants, either in cash or in kind. The fund's net asset value would be calculated daily using a pricing benchmark based on activity across major spot bitcoin exchanges. The filing places Morgan Stanley among firms entering the spot bitcoin ETF market after regulators approved initial U.S. products in early 2024.

Read at Bitcoin Magazine