Morgan Stanley Files Bitcoin Trust Plan Naming Coinbase and BNY Mellon as Custody Partners

Morgan Stanley’s Bitcoin Trust filing names Coinbase and BNY Mellon as custody partners, outlining cold storage security and ETF-style structure.

Morgan Stanley is moving closer to launching a Bitcoin investment vehicle in the United States. A recent filing with the Securities and Exchange Commission outlines the structure of the proposed Morgan Stanley Bitcoin Trust. The document details custody partners, pricing mechanisms, and operational roles tied to the fund. 

Coinbase and BNY Mellon Selected to Hold Assets for Morgan Stanley BTC Trust

Morgan Stanley (MS) submitted a Form S-1 prospectus describing how the trust would manage and store its Bitcoin holdings. According to the filing, Coinbase Custody (COIN) and Bank of New York Mellon (BNY) will act as the fund’s Bitcoin custodians.

Both institutions would store the digital assets and support transfers tied to share creations and redemptions. These transactions occur when authorized participants exchange ETF shares for Bitcoin or cash.

Under the proposed structure, most of the trust’s Bitcoin would remain in offline cold storage. Private keys remain disconnected from the internet, reducing exposure to hacking risks.

At the same time, a smaller share of holdings may be moved into trading wallets during creation or redemption. These wallets allow the transactions needed to process ETF share flows.

The filing also states that custody services include insurance protection. However, the coverage is shared across multiple clients and may not apply to every potential loss.

BNY Mellon Set to Manage Administration for New Bitcoin Trust

Beyond custody duties, Bank of New York Mellon will perform several administrative roles. The bank will serve as fund administrator, transfer agent, and cash custodian.

Through these roles, BNY will manage accounting records, shareholder activity, and cash movements tied to ETF operations. These functions follow the same structure used in many traditional exchange-traded funds.

Morgan Stanley plans to structure the trust as a passive investment vehicle. Instead of derivatives or leverage, the fund will hold Bitcoin directly.

For pricing, the trust will rely on the CoinDesk Bitcoin Benchmark 4PM New York Settlement Rate. The benchmark gathers trade data from several major spot exchanges to determine the daily reference price.

According to the filing, this pricing approach helps limit the influence of irregular trades or sudden price spikes. Oversight procedures and conflict-of-interest rules govern the benchmark’s administration.

Morgan Stanley’s move places another major Wall Street firm in the growing race for spot Bitcoin ETF products. Institutional interest in regulated crypto exposure continues to expand. 

Combining a crypto-native custodian with a traditional banking institution reflects how large investors approach digital assets today.

If approved, the Morgan Stanley Bitcoin Trust would offer investors a familiar exchange-traded route into BTC. In turn, that structure removes many of the operational challenges linked to direct ownership.

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