Morgan Stanley is nearing the launch of its spot Bitcoin ETF, as a New York Stock Exchange listing update suggests it has reached the final stages of approval. Analysts predict that the product could launch within days as it nears completion.
Bloomberg Senior ETF Analyst Eric Balchunas shared the update on Wednesday. The update usually suggests that the product is nearing launch. The product is expected to trade under the ticker MSBT.
The update comes as Morgan Stanley filed updated documents with the US Securities and Exchange Commission. The firm filed an amended S-1 document on March 18. The document outlined a seed investment of $1 million. It also detailed an initial basket of 10,000 shares.
Morgan Stanley Completes Key Filings Ahead of ETF Launch
The firm also filed a form 8-A, which registers the ETF shares. This enables the fund to be listed on the NYSE Arca Exchange. This series of actions indicates that the fund is ready for market entry, though the exact date for the launch is yet to be made public.
The ETF will be backed by physical Bitcoin, with the fund’s price based on a benchmark without the use of leverage or derivatives. This makes the ETF a spot Bitcoin ETF, as approved in January 2024. This type of ETF has generated significant interest from institutions.
Fidelity will be the main Bitcoin custodian for the ETF, with BNY Mellon offering administrative support. These are significant players in the ETF market.
Morgan Stanley has not disclosed its fee structure. The spot Bitcoin ETF market is highly competitive. Most spot Bitcoin ETFs have fees between 0.2% and 0.25%. BlackRock’s iShares Bitcoin Trust, with $54.6 billion in assets, charges 0.25%.
Balchunas expects Morgan Stanley’s fee to be a bit lower. It could be 0.24%. This will be a competitive fee for the firm. Pricing was a significant factor in attracting investors.
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Morgan Stanley’s entry in the market is significant because it is considered the first large U.S. bank to offer a spot Bitcoin ETF. It was considered unthinkable a few years ago, according to Balchunas.
Digital Asset Adoption Still in Early Stages
The bank also has a large advisory network. It has around 16,000 financial advisors, and they have assets worth $6.2 trillion. This is a larger number of financial advisors compared to Merrill, Goldman Sachs, and JPMorgan.
The adoption of the platform is still at an early stage. The executive of a company stated that financial advisors are still evaluating crypto ETFs. They are trying to understand how digital assets can be included in traditional portfolios.
Amy Oldenburg, who heads digital asset strategy, offered additional insights. Her company sees about 80% of their ETF activity on their platform come from self-directed accounts. This shows advisors are still cautious.
Morgan Stanley has allowed its brokerage customers to purchase spot Bitcoin exchange-traded funds since 2024. However, the upcoming launch is a deeper foray for Morgan Stanley into the digital asset market.
Also Read: Bitcoin ETF Inflows Hit $2.5B as Supply Tightens Across Exchanges
