Financial services firm Morgan Stanley has named BNY Mellon and Coinbase as the custodians for its proposed spot Bitcoin ETF, according to a recent SEC filing. The custodians will hold the fund’s Bitcoin primarily in cold storage. This move follows the firm’s ETF filings in January and reflects ongoing institutional interest despite recent market volatility.
Morgan Stanley has selected Bank of New York (BNY) Mellon and crypto exchange Coinbase as custodians for its spot Bitcoin Trust Exchange-Traded Fund, an SEC filing shows. The custodians will hold all the fund’s Bitcoin in cold storage, with a portion moving to internet-connected hot wallets for creation and redemption.
The filing stated, “The Bitcoin custodians are chartered as a New York state bank, in the case of BNY, and as a New York state limited liability trust company, in the case of Coinbase custodian. The Bitcoin custodians provide custody and trade execution services for digital assets.” Morgan Stanley had filed applications for spot Bitcoin and Solana ETFs in January.
This ETF initiative highlights growing institutional crypto adoption amid a market downturn. Bitcoin remains down roughly 42% from its all-time high near $126,000, but ETF flows have recently turned positive.
BlackRock’s spot Bitcoin ETF saw $322 million in inflows on a single day this week, offsetting outflows from rivals. This contributed to a weekly total of $683.3 million in inflows, following $787.3 million the prior week.
Advisor Jeff Park noted the fund establishes Morgan Stanley’s foothold in crypto, even if it isn’t a “blockbuster.” On a recent earnings call, Chairman and CEO Ted Pick stated the firm was “well positioned now in the crypto and tokenized asset space.”
Park said launching an ETF cements the company’s footprint and provides access to industry talent. He added that a Bitcoin ETF from a major financial firm signals untapped interest and a larger market than anticipated.
