Morgan Stanley nearing launch of Wall Street’s first in-house spot Bitcoin ETF

Morgan Stanley, one of Wall Street’s largest investment banks, is set to become the first major bank to launch its own spot Bitcoin exchange-traded fund (ETF).

According to industry sources on the 26th (local time), Morgan Stanley recently filed an amended registration statement (S-1/A) with the U.S. Securities and Exchange Commission (SEC) for its spot Bitcoin ETF, the “Morgan Stanley Bitcoin Trust (MSBT).” Eric Balchunas, Bloomberg’s senior ETF analyst, wrote on social media that “a notice has been posted for MSBT’s upcoming listing on the New York Stock Exchange (NYSE),” adding that “this is a sign the launch is imminent.”

The potential impact of the launch stems from Morgan Stanley’s formidable distribution network. The firm has about 16,000 financial advisors across the United States, overseeing $6.2 trillion in client assets. That is nearly twice the combined size of the wealth-management divisions of Goldman Sachs, JPMorgan, and Merrill Lynch.

Until now, Morgan Stanley has taken a conservative stance, recommending third-party Bitcoin ETFs such as BlackRock’s only to a select group of wealthy clients. Once MSBT is launched, however, the firm’s 16,000 advisors will be able to directly offer clients Bitcoin exposure without going through rival funds. Morgan Stanley CEO Ted Pick had earlier this year signaled a more aggressive posture, saying the bank would “work with regulators to introduce safe crypto-asset products.”

Markets expect the move to significantly accelerate growth in the spot Bitcoin ETF market, currently valued at about $83 billion. John Haar, head of private services at Swan Bitcoin, said, “Morgan Stanley launching its own ETF is evidence that it is convinced Bitcoin will become a permanent allocation in wealth-management clients’ portfolios.”