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Morgan Stanley Files Updated Bitcoin ETF Plan, Wall Street Race Heats Up

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Morgan Stanley Files for New Bank Charter to Offer Crypto Custody

The post Morgan Stanley Files Updated Bitcoin ETF Plan, Wall Street Race Heats Up appeared first on Coinpedia Fintech News

Morgan Stanley, an American financial services firm, has filed a second amended S-1 with the U.S. Securities and Exchange Commission (SEC) for its spot Bitcoin ETF. The fund, named Morgan Stanley Bitcoin Trust, is expected to trade under the ticker MSBT on NYSE Arca if approved.

Morgan Stanley Bitcoin ETF Filing Signals Institutional Expansion

According to the March 17 filing with the U.S. Securities and Exchange Commission (SEC), Morgan Stanley submitted its second amended S-1 for the Morgan Stanley Bitcoin Trust, which plans to trade under the ticker MSBT on NYSE Arca.

The filing outlines key details, including a 10,000-share creation unit and an initial $1 million seed investment. Coinbase Custody will handle Bitcoin storage in offline wallets, while BNY Mellon will manage cash, administration, and transfers.

The fund will support both cash and in-kind transactions, giving institutional investors flexibility when entering or exiting a position.

Although approval is not guaranteed, the updated filing shows the process is moving forward, bringing Morgan Stanley closer to becoming the first major U.S. bank to launch a spot Bitcoin ETF.

Bitcoin ETF Inflows Cross $56 Billion Since Launch

Since the approval of spot Bitcoin ETFs in January 2024, the market has already seen over $56.26 billion in total inflows. These funds have become a major driver behind Bitcoin’s recent price growth.

One of the major drivers of this inflow, BlackRock’s (IBIT) and Fidelity’s (FBTC) remain the leading products attracting the largest share of capital.

However, despite this strong demand, spot Bitcoin ETFs have recently recorded two consecutive days of outflows, totaling $163.5 million and $90.2 million.

Following these short-term outflows, the Bitcoin price has seen a drop lately to below $70,000.

How Morgan Stanley ETF Could Impact Bitcoin Price

If approved, Morgan Stanley’s ETF could further increase demand for Bitcoin. The bank manages around $1.8 trillion in assets, meaning even a small allocation shift could bring billions into the market.

For example, a 1% allocation would equal $18 billion, which could significantly boost buying pressure. Since ETFs require actual Bitcoin purchases, this reduces available supply and supports higher prices over time.

For now, the focus will be on how the SEC responds and whether more banks follow the same path into crypto ETFs.

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