Skip to content
- Morgan Stanley launches MSBT Bitcoin ETP on NYSE Arca with regulated investor access.
- MSBT tracks Bitcoin price without direct ownership using a cash-based ETF structure.
- A low 0.14% fee positions MSBT among the cheapest US Bitcoin ETPs, boosting competition.
Morgan Stanley has launched a new Bitcoin exchange-traded product on NYSE Arca. The offering provides regulated access to digital assets for investors. It marks another step in the bank’s strategy to expand its presence in the crypto market.
Morgan Stanley Investment Management confirmed the launch of the Morgan Stanley Bitcoin Trust. The product trades under the ticker MSBT. It is designed to track the price of Bitcoin. The trust allows exposure without direct ownership of the asset.
Morgan Stanley MSBT Structure and Market Debut
The listing follows an updated S-1 filing with the U.S. Securities and Exchange Commission. The filing outlines the structure and operations of the fund. Trading has started on NYSE Arca. The structure aligns with existing exchange-traded products in the market.
Addressing the launch, Ben Huneke, head of Morgan Stanley Investment Management, stated that the offering is consistent with the long-run development trends within the sphere of finance.
Moreover, he noted that his company utilizes its expertise in different areas. It seeks to provide value and create new opportunities for investments.
As per earlier filing, this fund utilizes the cash creation and redemption approach. The authorized participants are Virtu Americas, Jane Street, and Macquarie Capital. They issue or redeem shares in large batches. It is common practice for exchange-traded funds.
The process of creation includes the delivery of cash to the fund by the participants. Then, a counterparty invests this money in Bitcoin. Subsequently, they transfer these assets to the trust.
Also Read: South Korea Pushes Crypto Exchanges to Verify Holdings Every 5 Minutes
MSBT Redemptions and Custody
In terms of redemptions, the approach is reversed. Bitcoin is sold in the market. Cash is distributed back to the participants. Such an approach helps to keep the fund consistent with its NAV. Furthermore, liquidity can be maintained for larger investors.
Coinbase Custody Trust Company is the Bitcoin custody provider for MSBT. Moreover, it acts as a custodian of Bitcoin. At the same time, BNY Mellon operates as an administrator and a cash custodian.
MSBT has a management fee of 0.14% per year. As a result, it will belong to the most affordable Bitcoin ETPs available on the US market.
Fees are becoming an increasingly important issue for many investment products. There are many options that allow obtaining similar access to Bitcoin.
The launch demonstrates growing interest in cryptocurrencies within the institutional investor community. In its turn, Morgan Stanley has been constantly broadening its crypto strategies. The product provides access to the market in a regulated manner.
Also Read: Ripple Expands in Africa: Crypto Regulation and Digital Asset Growth Explained
