Morgan Stanley Gets NYSE Nod for Bitcoin ETF Launch
Morgan Stanley secured NYSE Arca listing approval for its Bitcoin Trust, becoming the first major U.S. bank to issue a spot Bitcoin ETF directly rather than through an asset management arm.
Key Takeaway
First bank-issued Bitcoin ETF signals institutional validation beyond asset managers.
Bloomberg Senior ETF Analyst Eric Balchunas said the NYSE listing typically signals a launch is imminent. The bank submitted its first S-1 registration in January, followed by a second amendment on March 18 detailing the seed creation basket of 50,000 shares and ₱60.12 million ($1 million).
BlackRock, Fidelity, Invesco and VanEck all launched spot Bitcoin ETFs through asset management arms, not banking divisions. Morgan Stanley's structure gives it a distribution edge through its network of 16,000 wealth advisors managing trillions in client assets.
Coinbase Custody will hold the majority of Bitcoin in cold storage, with BNY Mellon handling cash custody and administration. The firm hasn't disclosed its management fee yet. Competing spot Bitcoin ETFs charge between 0.20% and 0.30% annually, while BlackRock's iShares Bitcoin Trust runs at 0.25%.
Morgan Stanley Head of Digital Asset Strategy Amy Oldenburg told attendees at Tuesday's Digital Asset Summit the firm has been modernizing financial infrastructure for years. Morgan Stanley filed an S-1 for a Solana Trust alongside the Bitcoin product on January 6.
This article was written based on reporting from Bitcoin Magazine.
