Morgan Stanley is preparing to launch its proprietary spot bitcoin exchange-traded product, the Morgan Stanley Bitcoin Trust (MBST), following a listing notice from NYSE Arca, with trading expected to begin under the ticker MSBT US.

The move positions Morgan Stanley as the first major U.S. bank to directly issue its own spot bitcoin ETF rather than distribute third-party offerings, marking a significant development in institutional cryptocurrency adoption.

The launch comes amid rapid expansion in the spot bitcoin ETF market since 2024, where products such as iShares Bitcoin Trust from BlackRock have attracted tens of billions in inflows.

Morgan Stanley’s entry also introduces aggressive pricing, with MBST charging an annual fee of 0.14%, undercutting the roughly 0.25% charged by many existing U.S. spot bitcoin ETFs, signaling a strategy focused on gaining market share through cost leadership and leveraging its extensive wealth management distribution network.

The new trust will directly hold bitcoin, with Coinbase serving as custodian and prime broker, while BNY Mellon will manage administration, transfer agency, and cash custody.

This structure mirrors existing spot bitcoin ETF frameworks, where assets are stored securely and moved only during share creation and redemption.

With Morgan Stanley overseeing trillions in client assets and maintaining a large advisor network, the in-house product could significantly influence capital flows, especially as traditional wealth platforms gradually expand exposure to digital assets.

Since 2024, spot bitcoin ETFs have collectively drawn over $50 billion in inflows, and with bitcoin trading near the $68,000 range, the introduction of MBST adds another institutional access channel, emphasizing lower costs and seamless integration into traditional brokerage accounts.