TLDR
- Morgan Stanley’s Bitcoin ETF, MSBT, is set to begin trading tomorrow on NYSE Arca.
- The trust will track the CoinDesk Bitcoin Benchmark 4 PM NY Settlement Rate.
- MSBT will hold Bitcoin directly and will not use leverage or active trading.
- The ETF has an annual sponsor fee of 0.14%, which is lower than most competitors.
- Coinbase and BNY will serve as the trusted custodians for the Bitcoin holdings.
Morgan Stanley’s Bitcoin ETF is set to begin trading tomorrow on the NYSE Arca under the ticker MSBT. The U.S. Securities and Exchange Commission (SEC) declared the Morgan Stanley Bitcoin Trust effective after the bank filed its final prospectus. This launch marks Morgan Stanley’s entrance into the competitive U.S. spot Bitcoin ETF market.
MSBT ETF Structure and Trading Details
The Morgan Stanley Bitcoin Trust is designed as a physical Bitcoin product, meaning it will hold Bitcoin directly. The trust will track the CoinDesk Bitcoin Benchmark 4 PM NY Settlement Rate, reflecting the value of Bitcoin in the market. The trust will not engage in any active trading, leverage, or derivatives, ensuring it mirrors Bitcoin’s performance without attempting to outperform it.
With this approach, the ETF offers a straightforward product for investors seeking exposure to Bitcoin. The trust’s low-cost structure includes an annual delegated sponsor fee of just 0.14%. This fee is lower than the 0.25% fee charged by other major Bitcoin ETFs, such as BlackRock’s IBIT.
Custody and Seed Creation Details
Morgan Stanley’s Bitcoin ETF will rely on BNY and Coinbase Custody Trust Company for the safe storage of Bitcoin. These trusted custodians are responsible for holding the Bitcoin assets in the trust, ensuring security and transparency for investors. The initial creation baskets for the trust are expected to total $1 million, with 50,000 shares to be issued ahead of the listing.
This structure and the pricing model demonstrate Morgan Stanley’s competitive positioning in the growing Bitcoin ETF market. As the first major U.S. bank to file for spot Bitcoin ETFs, the firm has made a clear commitment to expanding its crypto offerings. It continues to explore further opportunities, including offering Bitcoin, Ether, and Solana trading through E*Trade by 2026.
The launch of MSBT underlines Morgan Stanley’s confidence in the future of crypto investments, providing retail and institutional investors an additional option in the evolving Bitcoin ETF space.