Morgan Stanley filed a second amended S-1 for its proposed spot Bitcoin exchange-traded fund (ETF), detailing seed capital, buying and selling companions and itemizing plans because the Wall Road financial institution strikes nearer to launching the product below the ticker MSBT.
The amended submitting says the belief expects to lift $1 million by way of the sale of fifty,000 preliminary seed shares to its delegated sponsor forward of itemizing on NYSE Arca, then use the proceeds to purchase Bitcoin (BTC) for the fund. Morgan Stanley mentioned the fund stays topic to regulatory approval earlier than it will possibly start buying and selling.
The submitting lists Jane Road, Virtu Americas and Macquarie Capital as licensed members, permitting them to create or redeem giant blocks of shares and revenue from the arbitrage between Bitcoin’s worth and the ETF’s share worth. This retains the ETF’s worth near the worth of Bitcoin.
Morgan Stanley really useful a 2% to 4% allocation to crypto portfolios for buyers and monetary advisers in October 2025 and allowed its monetary advisors to advocate crypto funds to purchasers with particular person retirement accounts (IRAs) and 401(ok)s.
“Morgan Stanley is shifting from distributing BlackRock’s IBIT to issuing its personal product, capturing administration charges immediately reasonably than incomes distribution commissions,” Marcin Kazmierczak, co-founder of RedStone, informed Cointelegraph, including that the financial institution’s 15,000 monetary advisors will introduce an actual “distribution muscle” for the ETF.
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Wall Road strikes nearer to crypto funds
The transfer provides to a broader push by giant US monetary establishments to develop entry to crypto-related merchandise.
On Jan. 5, 2026, the second-largest US financial institution, Financial institution of America, started permitting advisers in its wealth administration companies to advocate publicity to 4 Bitcoin ETFs, which have been beforehand solely accessible upon request, Cointelegraph reported.
A day earlier, Vanguard, the world’s second-largest asset supervisor, enabled crypto ETF buying and selling for its purchasers, reversing its earlier stance on digital asset ETFs.
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BlackRock, the world’s largest asset administration agency, really useful an as much as 2% Bitcoin allocation to its purchasers in December 2024.
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