Bitcoin Trust ETF Filed by Morgan Stanley in Fresh SEC Submission

TLDR

• Morgan Stanley has filed a Form S-1 with the SEC to register a spot Bitcoin exchange-traded fund.
• The proposed fund is named the Morgan Stanley Bitcoin Trust and will hold Bitcoin directly.
• The ETF will track Bitcoin’s price using a benchmark based on major spot market exchanges.
• The fund will not use leverage or derivatives and will be managed as a passive investment vehicle.
• Shares of the trust will be created and redeemed in large blocks through authorized participants.

Morgan Stanley has filed a Form S-1 registration with the U.S. Securities and Exchange Commission to launch a spot Bitcoin ETF, naming it the Morgan Stanley Bitcoin Trust, and the filing marks another direct entry of a traditional banking giant into the digital asset space as it seeks regulatory approval for a fund that holds Bitcoin directly, not through derivatives, with shares to be traded on a national securities exchange.

Morgan Stanley Bitcoin Trust Targets Spot Market Exposure

Morgan Stanley Investment Management will sponsor the newly proposed fund and will manage the product passively.

The fund plans to track the price of Bitcoin net of fees using a benchmark tied to major spot exchange activity.

It will not use leverage or derivatives, as the trust intends to hold Bitcoin directly under custodial arrangements.

The fund will calculate its net asset value daily based on selected spot market trading activity and data aggregation.

The ETF structure allows authorized participants to create and redeem shares in blocks either in cash or in kind.

Cash orders will go through selected third-party Bitcoin counterparties chosen by the fund sponsor.

Retail investors will be able to access the fund by trading shares through traditional brokerage accounts.

The filing reflects a strategic move to simplify Bitcoin exposure for institutional and retail clients alike.

Solana Trust to Include Staking Mechanism

Morgan Stanley also submitted an S-1 for a Solana-focused trust alongside its Bitcoin ETF registration.

The Solana trust is designed to mirror the market price of Solana, the native asset of the Solana blockchain network.

Unlike the Bitcoin Trust, this product proposes to stake a portion of the fund’s Solana holdings.

This approach enables the fund to earn staking rewards which would then be added to the fund’s net asset value.

The trust aims to offer investors asset appreciation and staking yield within a single investment product.

If approved, the Solana Trust would provide exposure to Solana’s performance via standard brokerage platforms.

The fund structure supports passive management with no active trading of Solana within the trust.

The inclusion of staking distinguishes the Solana Trust from earlier digital asset funds in the market.

Morgan Stanley Expands Digital Asset Strategy

Morgan Stanley, with $1.8 trillion in assets under management, continues to advance its digital asset initiatives.

The bank was the first among major financial institutions to allow advisors to pitch Bitcoin ETFs to clients.

Morgan Stanley also intends to offer crypto services through its E*Trade brokerage platform.

The new ETF filings reinforce the firm’s commitment to expanding its presence in the cryptocurrency market.

The filing date of both S-1s was January 6, indicating a synchronized launch strategy for the two funds.

The ticker symbols for both ETFs have not yet been disclosed by the institution.

Morgan Stanley now awaits SEC review and potential approval for the proposed spot Bitcoin and Solana ETFs.

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