Morgan Stanley filed a second amended S-1 for its proposed spot Bitcoin exchange-traded fund, outlining seed capital, authorized trading partners and listing plans as it advances toward launching the product under the ticker MSBT. The amended filing says the trust expects to raise $1 million by selling 50,000 initial seed shares to its delegated sponsor ahead of a planned NYSE Arca listing, then use the proceeds to buy Bitcoin (BTC) for the fund. The fund remains subject to regulatory approval before trading can commence.
The filing names Jane Street, Virtu Americas and Macquarie Capital as authorized participants, enabling them to create or redeem large blocks of shares and arbitrage differences between Bitcoin’s market price and the ETF’s share price, which helps keep the ETF aligned with Bitcoin’s value.
Earlier, Morgan Stanley recommended a 2% to 4% allocation to crypto portfolios for investors and advisers in October 2025 and allowed its financial advisors to recommend crypto funds to clients with IRAs and 401(k)s.
“Morgan Stanley is moving from distributing BlackRock’s IBIT to issuing its own product, capturing management fees directly rather than earning distribution commissions,” Marcin Kazmierczak, co-founder of RedStone, said, adding that the bank’s roughly 15,000 financial advisors will provide significant distribution muscle for the ETF.
Wall Street moves closer to crypto funds
Morgan Stanley’s filing is part of a broader push by major U.S. financial institutions to expand access to crypto-related products. On Jan. 5, 2026, Bank of America began allowing advisers in its wealth management businesses to recommend exposure to four Bitcoin ETFs that had previously been available only upon request. A day earlier, Vanguard enabled crypto ETF trading for its clients, reversing its prior stance on digital asset ETFs. BlackRock recommended an up-to-2% Bitcoin allocation to clients in December 2024.
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