Morgan Stanley Files Second SEC Application to Launch Bitcoin ETF "MSBT" on US Stock Exchange The traditional financial world (TradFi) is about to enter a new era as Morgan Stanley, one of the world's most influential investment banks, is no longer just a "middleman" selling funds for others, but has decided to jump into the role of "fund owner" itself. This is being done through a second filing with the US SEC to amend its application for registration of the Morgan Stanley Bitcoin Trust (MSBT). If successful, they will become the first major bank to launch a Bitcoin Spot ETF under their own brand. 1) August 1, 2024: A cautious start — Morgan Stanley will allow financial advisors to recommend Bitcoin ETFs to clients for the first time, but limited to BlackRock and Fidelity funds only. Every dollar invested by clients will be subject to change. 1) Fund management fees go to competitors. 2) Late 2025 — Goldman Sachs proceeds with the acquisition of ETF issuing company Innovator for $2 billion to have its own crypto fund. Meanwhile, Merrill Lynch begins allowing advisors to proactively recommend Bitcoin ETFs to clients in January 2026, a clear signal that major US banks are moving from distributors to product owners. 3) January 2026 — Morgan Stanley files its first S-1 (Securities Registration Application with the SEC) for both the Bitcoin ETF and the Solana ETF simultaneously, but without specifying any key details. 4) Early 2026 — All 15,000 financial advisors are approved to proactively recommend Bitcoin ETFs to clients, whereas previously they had to wait for client requests. 5) March 18, 2026 — Second amendment filing reveals all cards. This time, the details are complete: 🔹Market Symbol: MSBT on the NYSE Arca 🔹Bitcoin Custodian: Coinbase Custody, stored in Cold Storage (an offline wallet disconnected from the internet) 🔹Cash and Fund Management Custodian: BNY Mellon and Fidelity 🔹Fund Management Fee: Approximately 0.20%–0.30% per year (compared to BlackRock's IBIT of 0.25%) 🔹Special: Fee waiver for the first $5 billion for 6 months 6) The real reason for crossing this line The numbers speak for themselves — for every $1 billion Morgan Stanley clients deposit into BlackRock's IBIT, a 0.25% annual fee flows into BlackRock's pockets, totaling $2.5 million annually. But with MSBT, that figure belongs to Morgan Stanley itself. With $1.8 trillion in assets, even if only 1% of clients invested in MSBT, that would immediately mean managing over $18 billion in funds. This is similar to what we've seen in the mutual fund market, where large banks realize they already have an established client base and only need to change the wallet receiving the funds. Amy Oldenburg, head of digital asset strategy at Morgan Stanley, stated that the bank intends to develop its own comprehensive custody and exchange system in the future because "clients trust the Morgan Stanley brand to be reliable." If the SEC approves, MSBT will become the first Bitcoin ETF in history issued directly by a major US commercial bank, not just an asset management company. #MorganStanley #BitcoinETF #MSBT