US investment bank Morgan Stanley filed a second amended S-1 for its proposed spot Bitcoin exchange-traded fund (ETF), detailing seed capital, trading partners and listing plans as the Wall Street bank moves closer to launching the product under the ticker MSBT.
The amended filing says the trust expects to raise $1 million through the sale of 50,000 initial seed shares to its delegated sponsor ahead of listing on NYSE Arca, then use the proceeds to buy Bitcoin (BTC) for the fund. Morgan Stanley said the fund remains subject to regulatory approval before it can begin trading.
The filing lists Jane Street, Virtu Americas and Macquarie Capital as authorized participants, allowing them to create or redeem large blocks of shares and profit from the arbitrage between Bitcoinโs price and the ETFโs share price. This keeps the ETFโs price close to the value of Bitcoin.
Morgan Stanley recommended a 2% to 4% allocation to crypto portfolios for investors and financial advisers in October 2025 and allowed its financial advisors to recommend crypto funds to clients with individual retirement accounts (IRAs) and 401(k)s.
โMorgan Stanley is moving from distributing BlackRockโs IBIT to issuing its own product, capturing management fees directly rather than earning distribution commissions,โ Marcin Kazmierczak, co-founder of RedStone, told Cointelegraph, adding that the bankโs 15,000 financial advisors will introduce a real โdistribution muscleโ for the ETF.
Related: Morgan Stanley, other top holders add Bitmine exposure amid sell-off
Wall Street moves closer to crypto funds
The move adds to a broader push by large US financial institutions to expand access to crypto-related products.
Starting Jan. 5, 2026, the second-largest US bank, Bank of America, began allowing advisers in its wealth management businesses to recommend exposure to four Bitcoin ETFs, which were previously only available upon request, Cointelegraph reported.ย
A day earlier, Vanguard, the worldโs second-largest asset manager, enabled crypto ETF trading for its clients, reversing its previous stance on digital asset ETFs.
Related: Wells Fargo sees โYOLOโ trade driving $150B into Bitcoin and risk assets
BlackRock, the worldโs largest asset management firm, recommended an up to 2% Bitcoin allocation to its clients in December 2024.
Magazine: Bitcoinโs โbiggest bull catalystโ would be Saylorโs liquidation โ Santiment founder
