Morgan Stanley has submitted an updated S-1 registration document to US regulators for its proposed Bitcoin exchange-traded fund (ETF), set to trade on NYSE Arca under the symbol MSBT.

The ETF is still awaiting regulatory approval before trading can begin. The trust intends to raise $1 million through the sale of 50,000 initial seed shares to a delegated sponsor prior to listing, with these funds used to purchase Bitcoin for the fund. Jane Street, Virtu Americas, and Macquarie Capital are identified as authorised participants, allowing them to create or redeem large blocks of shares to help maintain price parity between the ETF and its underlying asset via arbitrage.

Strategic move and distribution strategy

This filing represents a significant shift in Morgan Stanley’s strategy. Historically, the bank has distributed BlackRock’s iShares Bitcoin Trust (IBIT) without managing its own Bitcoin ETF product. By launching this proprietary fund, Morgan Stanley aims to capture management fees directly rather than relying on distribution commissions.

Morgan Stanley is also enhancing its digital asset offerings for clients. In October 2025, the bank advised investors to allocate 2% to 4% of their portfolios to crypto. Subsequently, it allowed financial advisers to recommend crypto funds to clients with individual retirement accounts and 401(k)s.

The MSBT filing aligns with a broader trend among major US financial institutions to increase client access to Bitcoin-related products. In January 2026, Bank of America began allowing wealth management advisers to proactively recommend four Bitcoin ETFs after previously making them available only upon request. Similarly, Vanguard, the world’s second-largest asset manager, enabled trading of crypto ETFs for its clients in the same month, reversing its previous stance on digital assets. BlackRock had recommended up to a 2% Bitcoin allocation to its clients by December 2024.