TLDR

  • Morgan Stanley has submitted a Form S-1 registration statement to the SEC for a spot Bitcoin exchange-traded fund.
  • The planned fund, called the Morgan Stanley Bitcoin Trust, will have direct ownership of Bitcoin.
  • This ETF will follow Bitcoin’s price via a benchmark derived from leading spot market exchanges.
  • The vehicle will be passively managed and will not employ leverage or derivative instruments.
  • Authorized participants will create and redeem the trust’s shares in large block transactions.

Morgan Stanley has submitted a filing to the U.S. Securities and Exchange Commission for a spot Bitcoin ETF, designated the Morgan Stanley Bitcoin Trust. This move represents another foray by a major traditional bank into digital assets, seeking approval for a fund that holds Bitcoin directly rather than through derivatives, with its shares listed for trading on a national securities exchange.

Morgan Stanley Bitcoin Trust Targets Spot Market Exposure

Morgan Stanley Investment Management is set to sponsor and passively manage the newly proposed fund.

The fund aims to track Bitcoin’s price, after fees, using a benchmark linked to activity on major spot exchanges.

It will avoid leverage and derivatives, as the trust is structured to hold Bitcoin directly via custodial agreements.

A daily net asset value will be calculated using aggregated trading data from selected spot markets.

The ETF framework permits authorized participants to create and redeem share blocks using cash or cryptocurrency.

Cash-based orders will be processed by specific third-party Bitcoin counterparties appointed by the fund sponsor.

Retail investors can gain access to the fund by buying and selling shares through conventional brokerage accounts.

This filing is a strategic step to make Bitcoin investment more straightforward for both institutional and retail clients.

Solana Trust to Include Staking Mechanism

Concurrently with its Bitcoin ETF filing, Morgan Stanley also lodged an S-1 for a trust focused on Solana.

The Solana trust is intended to reflect the market price of Solana, the native token of the Solana blockchain.

In contrast to the Bitcoin fund, this product plans to stake a portion of its Solana holdings.

This strategy allows the fund to generate staking rewards, which will be incorporated into its net asset value.

The trust seeks to provide investors with combined exposure to potential asset growth and staking yield in one product.

Pending approval, the Solana Trust would enable investment in Solana’s performance through standard brokerage interfaces.

The fund is designed for passive management, with no active trading of Solana conducted within the trust.

The staking feature sets the Solana Trust apart from previous digital asset investment funds available in the market.

Morgan Stanley Expands Digital Asset Strategy

Morgan Stanley, overseeing $1.8 trillion in client assets, is furthering its initiatives in the digital asset sector.

The bank was a pioneer among large financial firms in permitting its advisors to recommend Bitcoin ETFs to clients.

Morgan Stanley also plans to introduce cryptocurrency services on its E*Trade brokerage platform.

These new ETF filings underscore the firm’s dedication to growing its footprint in the cryptocurrency market.

Both S-1 forms were filed on January 6, pointing to a coordinated strategy for launching the two funds.

The institution has not yet revealed the ticker symbols for either ETF.

Morgan Stanley is now awaiting review and possible approval from the SEC for its proposed spot Bitcoin and Solana funds.