Morgan Stanley Advances Bitcoin ETF Filing With Coinbase Custody and BNY Mellon Administration

Wall Street Bank Details ETF Infrastructure, Pricing Benchmark and Custody Structure in Updated SEC Filing

TL;DR

• Morgan Stanley amended its SEC filing for the Morgan Stanley Bitcoin Trust on March 4, 2026, naming Coinbase Custody as the digital asset custodian and BNY Mellon as administrator, transfer agent and cash custodian.
• The proposed ETF would hold Bitcoin directly, store most assets in cold storage, and calculate NAV using the CoinDesk Bitcoin Benchmark 4 PM New York Settlement Rate.
• Morgan Stanley first submitted the registration on January 6, 2026, outlining plans for the Bitcoin Trust and a separate Solana ETF proposal.

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Morgan Stanley amended its registration statement with the U.S. Securities and Exchange Commission on March 4, 2026, adding operational details to the proposed Morgan Stanley Bitcoin Trust exchange-traded fund, including custody arrangements and administrative roles tied to the product. The filing identifies Coinbase Custody Trust Company as the entity responsible for safeguarding the trust’s Bitcoin holdings, while BNY Mellon will serve multiple operational functions including administrator, transfer agent and cash custodian.

Morgan Stanley originally submitted the ETF registration on January 6, 2026, introducing the Morgan Stanley Bitcoin Trust as the bank’s first attempt to launch a U.S. spot Bitcoin exchange-traded fund designed to provide investors with exposure to the cryptocurrency through regulated securities markets rather than direct token ownership. The earlier registration also outlined plans for a separate Solana-linked exchange-traded fund as part of a broader digital-asset investment product strategy.

Regulatory filings describe the Bitcoin Trust as a physically backed exchange-traded fund that would hold Bitcoin directly instead of relying on derivatives contracts or synthetic exposure. Shares of the trust would represent fractional ownership of the Bitcoin reserves held by the fund, allowing investors to gain exposure to price movements through standard brokerage accounts while avoiding the operational complexity of directly managing cryptocurrency wallets.

Coinbase Custody Trust Company would hold the underlying Bitcoin in custody for the ETF, according to the amended filing. The structure relies primarily on offline storage methods known as cold storage, where the private keys controlling the digital assets remain disconnected from internet-connected systems to reduce potential exposure to cyber intrusion.

Documentation states that small quantities of Bitcoin may be temporarily transferred from cold storage into operational wallets during share creation or redemption events tied to the ETF’s trading mechanics. Those transfers allow authorized participants to facilitate liquidity by delivering or redeeming shares in exchange for the underlying asset when market demand requires adjustments to the ETF’s share supply.

Custody arrangements described in the filing include insurance coverage for assets held by the custodian, though the documentation notes that coverage may apply collectively across multiple accounts rather than individually to each customer. The filing also states that the insurance policies may not cover all losses tied to digital-asset custody operations, leaving certain risks outside the scope of protection.

BNY Mellon would handle operational and administrative infrastructure tied to the fund’s day-to-day management. Responsibilities assigned to the bank include maintaining accounting records, overseeing fund administration, managing shareholder ownership records as transfer agent, and acting as cash custodian responsible for processing subscription payments and redemption proceeds connected to ETF share creation.

Pricing for the ETF’s holdings would be determined using the CoinDesk Bitcoin Benchmark 4 PM New York Settlement Rate, a reference price used in several institutional financial products linked to Bitcoin. The benchmark aggregates trading data from multiple spot exchanges to produce a single standardized reference price used for daily valuation.

The benchmark is calculated once each day at 4:00 p.m. New York time, and that reference price would be used to determine the net asset value of the ETF shares. The valuation framework ties the ETF’s pricing methodology directly to the underlying spot market rather than futures contracts or derivative pricing models.

Morgan Stanley’s filing states that the ETF shares would trade on NYSE Arca if the product receives regulatory approval. Authorized participants would be able to create or redeem shares through cash or Bitcoin transactions depending on the operational structure used at the time of the transaction.

The proposed ETF framework mirrors operational structures commonly used by commodity exchange-traded funds, where asset custody, administrative services and market trading functions are distributed across multiple specialized financial institutions. Coinbase would provide digital-asset custody infrastructure while BNY Mellon manages operational administration and shareholder recordkeeping functions tied to the trust.

Morgan Stanley’s filing also describes the ETF as a passive investment vehicle designed to track the spot market price of Bitcoin rather than engage in active trading strategies. The trust would hold Bitcoin directly and calculate its net asset value using the daily benchmark reference rate tied to spot market data.

Large financial institutions have expanded involvement in digital-asset infrastructure through partnerships between traditional banking firms and crypto-native service providers. Coinbase has previously served as custodian for multiple digital-asset investment products issued by asset managers seeking regulated exposure to cryptocurrency markets.

Morgan Stanley has also explored broader involvement in digital-asset custody infrastructure through efforts to expand institutional crypto services, including applying for a national trust bank charter that would allow the bank to hold digital assets directly for institutional clients.

This article has been refined and enhanced by ChatGPT.