What to know:
- Morgan Stanley’s Bitcoin ETF ($MSBT) is one step closer to launch after the investment bank filed Amendment No. 4 with the SEC.
- Morgan Stanley’s Bitcoin ETF will carry a 0.14% annual sponsor fee compared to BlackRock’s 0.25% IBIT.
- BNY Mellon and Coinbase Custody will be the custody providers for the ETF.
Morgan Stanley Bitcoin ETF is one step closer to launch after the investment bank filed Amendment No. 4 with the SEC in its Form S-1 registration statement. The filing outlines the bank’s plans to list the NYSE Arca Bitcoin Trust under the ticker MSBT, which will track the market performance of the cryptocurrency.
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Bitcoin ETF Structure, Fees, and Custody Arrangements
The filing confirms the bank’s plans to launch the passive investment product without the use of leverage or derivatives. The ETF will be listed on the NYSE Arca Exchange, providing investors with exposure to the cryptocurrency through the bitcoin-tracking product.
Morgan Stanley’s proposed Bitcoin ETF, which was filed with the SEC in an update by the bank, is nearing launch, according to James Seyffart’s recent X post. The filing is likely the fourth amendment filed with the SEC in the bank’s effort to launch the ETF. The filing is likely to include minor changes that address the SEC’s comments.
Seyffart pointed out in his post that this might be the last amendment prior to the ETF launch, which might happen as early as next week. If approved, the Morgan Stanley Bitcoin Trust will give investors the chance to gain exposure to the price of Bitcoin in a regulated manner.
SEC Filing Signals Imminent ETF Launch
Amendment No. 4 also updates the bitcoin ETF fees, setting a 0.14% annualized delegated sponsor fee. This is lower than the 0.25% associated with the BlackRock 0.25% Ishares Bitcoin Trust (IBIT). The filing indicates the level of competition in the bitcoin ETF space.
Morgan Stanley Investment Management will be the delegated sponsor of the bitcoin ETF, overseeing operations and compliance. The custody of the bitcoin assets will be with The Bank of New York Mellon as well as Coinbase Custody Trust Company, using cold storage. The risks associated with the fund include the volatility of the price of Bitcoin, regulatory changes, and the potential disparity between the value of the ETF shares and the underlying Bitcoin.
The SEC filing is part of the overall trends in the crypto space in terms of investments. Analysts believe that the filing is the last step prior to approval. It is therefore imminent that the Bitcoin ETF will be launched in the near future. The competitive nature of the fund, including the low fees, will impact the market significantly.
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