Morgan Stanley has appointed Bank of New York (BNY) Mellon and Coinbase’s custodian arm to safeguard assets for its Morgan Stanley Bitcoin Trust, according to a Securities and Exchange Commission filing. The filing states the custodians will keep the fund’s Bitcoin primarily in cold storage, with a portion moved to internet-connected hot wallets as needed for creation and redemption activity.
The filing highlights the custodial structures: BNY Mellon is chartered as a New York state bank, while Coinbase’s custodian operates as a New York limited liability trust company. Both firms will provide custody and trade execution services for the Trust’s digital assets.
Morgan Stanley submitted applications in January for spot Bitcoin (BTC) and Solana (SOL) ETFs. The proposed funds are passive vehicles intended to hold the underlying cryptocurrencies and track their market prices.
The move reflects ongoing institutional interest in cryptocurrency despite a recent market downturn. The filing notes Bitcoin remains roughly 42% below its all-time high near $126,000. ETF flow patterns have been shifting: BlackRock’s spot Bitcoin ETF posted $322 million in inflows on Tuesday, helping offset outflows from competitors including Fidelity and Grayscale. That resulted in $683.3 million of inflows for the week, following $787.3 million the prior week—the first net-positive week after five straight weeks of nearly $4 billion in outflows.
Observers say launching a Bitcoin ETF gives Morgan Stanley a formal presence in the crypto market, even if initial assets may be smaller than leaders like BlackRock’s iShares Bitcoin Trust. Jeff Park, an advisor to asset manager Bitwise, said the ETF could aid recruitment of crypto specialists and support development of related initiatives, such as tokenized real-world asset trading.
On Morgan Stanley’s fourth-quarter 2025 earnings call, CEO Ted Pick said the bank is “well positioned now in the crypto and tokenized asset space” and signaled plans for additional activity in the area. The debut of a major financial institution’s Bitcoin ETF is widely seen as a positive for the broader industry, suggesting there remains significant untapped demand from potential investors.
This report is based on the SEC filing and public statements; readers are encouraged to verify details independently. The original reporting outlet notes its commitment to independent, transparent journalism and adherence to its editorial policies.