TLDR:
- Morgan Stanley filed an amended S-1 with the SEC, advancing plans for its spot Bitcoin Trust launch.
- Coinbase Custody will safeguard Bitcoin while BNY Mellon manages fund administration and cash.
- The trust will directly hold Bitcoin and track the CoinDesk Bitcoin Benchmark 4 PM NY rate.
- The move highlights growing institutional commitment to Bitcoin despite current market drawdowns.
Morgan Stanley Bitcoin Trust has moved closer to launch after the bank filed an amended S-1 with the SEC. The updated filing names Coinbase Custody Trust Company as Bitcoin custodian and BNY Mellon in multiple operational roles.
Morgan Stanley Investment Management will serve as the fund’s sponsor. The trust would hold Bitcoin directly, tracking the CoinDesk Bitcoin Benchmark 4 PM NY Settlement Rate. Shares are set to list on NYSE Arca upon approval.
Custody Structure and Fund Design
The fund is designed as a passive investment vehicle that holds Bitcoin directly, not through futures or derivatives. This places it alongside existing spot Bitcoin ETFs from BlackRock and Fidelity, both of which launched in January 2024.
Coinbase Custody Trust Company will serve as Bitcoin custodian and prime broker, handling digital asset storage and trade execution. It is chartered as a New York state limited liability trust company.
According to the SEC filing, “The Bitcoin custodians provide custody and trade execution services for digital assets.” Coinbase already serves as custodian for most U.S. spot Bitcoin ETFs on the market.
Most of the fund’s Bitcoin will be held in cold storage, keeping private keys offline and away from internet-connected systems.
A portion may temporarily move to hot wallets during share creation and redemption. This mirrors the standard approach across most existing spot Bitcoin ETF structures.
BNY Mellon will serve as administrator, transfer agent, and cash custodian, managing accounting, shareholder registry, and cash flows.
The filing notes that insurance for custodial services is provided but distributed across clients. Coverage may not extend to all potential losses in every scenario.
Morgan Stanley’s Crypto Strategy and Market Context
Morgan Stanley has been expanding its digital asset presence for several years before this filing. In 2021, it became the first major U.S. bank to offer wealthy clients access to a Bitcoin fund through NYDIG. By 2024, advisors were permitted to recommend Bitcoin ETF products from BlackRock and Fidelity.
Earlier in 2025, the bank appointed Amy Oldenburg to a newly created role focused on growing its digital asset strategy.
On the Q4 2025 earnings call, CEO Ted Pick told analysts the bank was “well positioned now in the crypto and tokenized asset space.” Morgan Stanley is also preparing to launch digital asset trading on its E*Trade platform.
Jeff Park, CIO at ProCap and Bitwise advisor, noted that the ETF benefits Morgan Stanley even if it does not match BlackRock’s IBIT scale.
He added that having its own product signals foresight and could help attract talent from the crypto industry. Park also described major firm ETF launches as a positive signal, noting there is “still significant untapped interest in digital assets.”
The filing arrives as Bitcoin trades roughly 42% below its all-time high of approximately $126,000. Despite the price drop, BlackRock’s IBIT recorded $322 million in inflows on Tuesday, offsetting outflows from Fidelity and Grayscale. This week’s total spot Bitcoin ETF flows stand at $683.3 million, following $787.3 million in net inflows last week.
