Morgan Stanley has filed an amended S-1 with the SEC to launch its spot Bitcoin exchange-traded fund under the ticker MSBT. The trust plans to raise $1 million by selling 50,000 seed shares to its sponsor before listing on NYSE Arca, using proceeds to purchase Bitcoin.
The filing identifies Jane Street, Virtu Americas, and Macquarie Capital as authorized participants, tasked with maintaining price alignment between the ETF and Bitcoin through creation and redemption mechanisms.
This move shifts Morgan Stanley from distributing BlackRock’s IBIT to issuing its own product, capturing management fees directly. The bank previously advised a 2% to 4% crypto allocation and permits advisors to recommend crypto funds in IRAs and 401(k)s.
Wall Street’s integration of crypto accelerates. Bank of America now allows wealth advisers to recommend four Bitcoin ETFs, while Vanguard has lifted restrictions, enabling client trading in crypto ETFs. BlackRock has also endorsed up to a 2% Bitcoin allocation for portfolios.