Morgan Stanley pushes forward with MSBT Bitcoin ETF through updated SEC submission
The investment banking giant has submitted its second S-1 amendment for the MSBT spot Bitcoin ETF, outlining initial funding, exchange listing details and institutional collaborators.
Morgan Stanley, a major US investment banking institution, has submitted its second amended S-1 registration form for the proposed spot Bitcoin exchange-traded fund (ETF), providing comprehensive information about initial seed funding, institutional trading partners and exchange listing arrangements as the prominent Wall Street financial institution approaches the launch of the investment product trading under the MSBT ticker symbol.
According to the updated filing documentation, the trust anticipates generating $1 million in capital through the issuance of 50,000 initial seed shares to its designated sponsor prior to commencing trading on NYSE Arca, with the capital raised being utilized to acquire Bitcoin (BTC) for the investment fund. The financial institution noted that the fund continues to require regulatory clearance before trading activities can commence.
The regulatory filing identifies Jane Street, Virtu Americas and Macquarie Capital as designated authorized participants, granting these entities the ability to create or redeem substantial share blocks and generate returns from arbitrage opportunities between Bitcoin's market price and the ETF's trading price. This mechanism maintains the ETF's valuation in close alignment with Bitcoin's underlying value.
In October 2025, Morgan Stanley issued guidance recommending a 2% to 4% allocation to crypto portfolios for investors and financial advisers and granted authorization to its financial advisors to recommend crypto funds to clients holding individual retirement accounts (IRAs) and 401(k)s.
"Morgan Stanley is moving from distributing BlackRock's IBIT to issuing its own product, capturing management fees directly rather than earning distribution commissions," Marcin Kazmierczak, co-founder of RedStone, told Cointelegraph, adding that the bank's 15,000 financial advisors will introduce a real "distribution muscle" for the ETF.
Wall Street moves closer to crypto funds
This development contributes to an expanding trend among major US financial institutions seeking to broaden client access to cryptocurrency-related investment products.
Beginning Jan. 5, 2026, Bank of America, the second-largest US bank, initiated a policy allowing advisers within its wealth management divisions to recommend exposure to four Bitcoin ETFs, which had previously been accessible only through client requests, Cointelegraph reported.
One day prior to that announcement, Vanguard, holding the position as the world's second-largest asset manager, permitted crypto ETF trading for its client base, marking a reversal from its earlier position on digital asset ETFs.
In December 2024, BlackRock, recognized as the world's largest asset management firm, issued recommendations for an up to 2% Bitcoin allocation to its clients.