Morgan Stanley Files SEC S-1 for $BTC Trust — Is Wall Street About to Pile In?

Group 1 - Morgan Stanley has filed a Form S-1 registration statement with the SEC to launch a spot bitcoin exchange-traded fund (ETF) named the Morgan Stanley Bitcoin Trust, marking a shift towards in-house crypto products [1][2] - The proposed ETF is designed as a passive fund that directly tracks Bitcoin's price performance in U.S. dollars, holding bitcoin directly without using leverage or derivatives [2][3] - The trust will have its net asset value calculated daily based on aggregated activity from major spot bitcoin exchanges, ensuring transparency in pricing [2] Group 2 - Shares of the trust are expected to be listed on a national securities exchange, pending SEC approval, with details on the ticker symbol yet to be disclosed [3] - Authorized participants will create and redeem shares in large blocks, either in cash or in kind, while retail investors will trade shares on the secondary market [3][4] - The U.S. market for spot bitcoin ETFs is rapidly expanding, with current products holding over $123 billion in net assets, representing approximately 6.6% of Bitcoin's total market capitalization [5] Group 3 - Morgan Stanley's move into crypto is part of a broader strategy, as the firm has also filed for a Solana-tracking trust, indicating an increased focus on crypto-linked investment vehicles [7] - The Solana trusts have attracted nearly $800 million in cumulative inflows, surpassing $1 billion in total net assets, showcasing the growing interest in diverse crypto assets [7] - BlackRock's spot bitcoin ETF has become a significant revenue driver for the firm, with allocations nearing $100 billion, highlighting the fee potential of such products [6]