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One of America’s biggest banks, Morgan Stanley, has upped the ante in its push to launch a spot Bitcoin ETF product. As of March 4, the firm has filed an amendment to its earlier Form S-1, naming its latest custody partners.
Morgan Stanley joins Bitcoin ETF bandwagon
The banking giant first filed for the Morgan Stanley Bitcoin Trust back in January, stirring the crypto world at the time. In the latest amendment filed, the bank said it will use Coinbase Custody and BNY Mellon as its custodial partners.
While Coinbase will be in charge of the crypto aspect, leveraging its industry positioning to enhance its operations. According to the S-1 filing, Morgan Stanley aims to operate the fund like a classic traditional market ETF.
At crucial points, it will shift its Bitcoin holdings to offline cold storage vaults. This will not only ensure the security of assets but might help drive trust and market share. Despite this arrangement, Morgan Stanley said custody insurance will be provided. However, some of the liabilities will be evenly shared by its customers.
BNY Mellon will play a significant and frontline role in administering the fund. From serving as an administrator, transfer agent and cash custodian, it will also handle accounting and more.
Bitcoin ETFs and price correlation
Pending the approval of the Morgan Stanley Bitcoin Trust, the broader industry has already warmed up to big banks' involvement in the ecosystem. From JPMorgan to Wells Fargo and more buying of Bitcoin ETF shares, there is a direct correlation to the price breakout.
The more than 40% drawdown in the Bitcoin price from its ATH of over $126,000 was spearheaded by BlackRock selling BTC holdings. However, the trend is shifting positively, with a series of buy-ups recorded this week.
At the time of writing, the top coin was changing hands for $72,030, up 7.31% in 24 hours amid validation from Coinbase CEO and other market leaders. Bigger future lift-offs are imminent should the SEC greenlight Morgan Stanley’s application.
Dan Burgin
Vladislav Sopov
