Morgan Stanley Investment Management Enters Digital Investments Universe With Launch of Morgan Stanley Bitcoin Trust
Morgan Stanley Investment Management (MSIM) announced today the launch of Morgan Stanley Bitcoin Trust (NYSE:MSBT), an exchange-traded product (ETP) that seeks to track the performance of bitcoin.
MSIM is the first U.S. bank-affiliated asset manager to offer a cryptocurrency ETP, and reflects a continued, firmwide focus by Morgan Stanley to develop digital asset solutions designed to meet evolving client demand.
"We are proud to introduce MSBT to the marketplace and believe this new ETP aligns with long-term trends in financial innovation and serves to strengthen the range of investments we provide investors," said Ben Huneke, Head of Morgan Stanley Investment Management. "MSBT is an example of how leveraging Morgan Stanley's collective strength and deep expertise across asset classes and market segments can add value for existing clients, unlock new investor opportunities and continue to pursue compelling and innovative investment ideas that solve investor challenges."
"ETPs remain a powerful way for investors to gain exposure to new asset classes within a transparent and regulated framework," said Ally Wallace, Global Head of ETF Strategy at Morgan Stanley Investment Management. "With MSBT, we're extending our product offering to meet growing client interest in digital assets. This builds on our track record of launching compelling investment strategies in the ETF wrapper to help investors meet their investment objectives."
The addition of MSBT expands MSIM's exchange-traded capabilities and reinforces the ongoing efforts to provide broader access to a wide range of investment offerings across traditional and emerging asset classes. The MSBT launch builds on Morgan Stanley's recent investments across the digital asset ecosystem, including the appointment of dedicated leadership to guide firmwide digital asset strategies and ongoing efforts to expand institutional-grade capabilities across custody, trading and product development.
"Digital assets are increasingly intersecting with traditional markets, and our focus is on helping clients access that evolution through structures they understand and trust," said Amy Oldenburg, Head of Digital Asset Strategy at Morgan Stanley. "MSBT reflects our firmwide approach to thoughtfully building digital asset capabilities grounded in traditional governance and market infrastructure that seeks to meet long-term client needs. We believe that our ability to simplify how investors access their complete portfolio across asset classes and investment types will resonate with our clients and investors across the globe."
MSBT seeks to track the performance of bitcoin, as measured by the performance of the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate (the "Pricing Benchmark"), which is calculated based on an aggregation of executed trade flow of major bitcoin spot exchanges. MSBT's unitary delegated sponsor fee is 0.14%, which is currently the lowest bitcoin ETP sponsor fee as of this release.
Coinbase and BNY have been selected to provide digital asset custody services for MSBT. BNY also serves as the administrator and transfer agent and will provide accounting, recordkeeping and cash management services.
Launched in early 2023, MSIM's suite of ETFs recently surpassed $12 billion in assets under management and comprises 19 products including five Calvert-branded ETFs, three Parametric-branded ETFs and 11 Eaton Vance-branded fixed income ETFs.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,400 investment professionals around the world and $1.9 trillion in assets under management or supervision as of December 31, 2025. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.
About Morgan Stanley
Morgan Stanley (NYSE:MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.
IMPORTANT NOTICE
A registration statement relating to these securities has been declared effective by the U.S. Securities and Exchange Commission ("SEC"). Before you invest, you should read the prospectus in that registration statement and other documents MSBT has filed with the SEC for more complete information about MSBT and the offering. You may get these documents for free by visiting EDGAR on the SEC's website at www.sec.gov. Alternatively, the Fund or any authorized participant will arrange to send you the prospectus (when available) if you request it by calling (833) 903-2211 or by contacting Foreside Fund Services, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
An investment in MSBT involves a high degree of risk, including the volatility of bitcoin, potential deviations between the market price of the MSBT's shares and MSBT's net asset value, regulatory uncertainty, custody and operational risks, and the possibility of a total loss of investment. MSBT is not registered under the Investment Company Act of 1940, as amended. Neither the SEC nor any other regulatory authority has approved or disapproved of MSBT's shares. Any representation to the contrary is a criminal offense. Investors should carefully review MSBT's prospectus, including the "Risk Factors" section, before investing.
Morgan Stanley Bitcoin Trust ETF Disclosure
Investing in digital assets involves risk, including possible loss of principal. An investment in Morgan Stanley Bitcoin Trust ETF ("MSBT" or the "Fund") is subject to a high degree of risk and heightened volatility. MSBT is not suitable for any investor that cannot afford loss of the entire investment.
The Fund has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Fund has filed with the SEC for more complete information about the Fund and this offering. To obtain a current prospectus, visit EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Fund or any authorized participant will arrange to send you the prospectus (when available) if you request it by calling (833) 903-2211 or by contacting Foreside Fund Services, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101.
Foreside Fund Services, LLC is the Marketing Agent for MSBT.
This information must be preceded or accompanied by a prospectus, click here to view or download prospectus. We advise you to consider the fund's objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the fund. Please read the prospectus carefully before you invest.
The Fund is not registered under the Investment Company Act, 1940 (the "40 Act") and is not subject to regulation under the 40 Act, unlike most mutual funds or ETFs. The Fund may trade at a premium or discount to its net asset value. The Fund is new and has a limited operating history upon which investors may base an evaluation of its likely performance.
The value of the Fund relates directly to the value of the underlying digital asset it holds, the value of which is highly volatile and subject to fluctuations due to a number of factors.
The Fund relies on third party service providers to perform certain functions essential to the affairs of the Trust. Some of these service providers may not be subject to federal regulation and oversight and the replacement of such service providers could pose a challenge to the safekeeping of the digital asset and to the operations of the Fund.
No guarantee or representation is made that the Fund's investment strategy, including, without limitation, its investment objectives or strategies, will be successful, and investment results may vary substantially over time. Nothing herein is intended to imply that the Fund's investment methodology or that investing may be considered "conservative," "safe," "risk free," or "risk averse."
This material is not an offer or solicitation of any kind to buy or sell any securities outside of the United States of America. Nothing in this content should be considered a solicitation to buy or an offer to sell shares of any investment in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction, nor is it intended as investment, tax, financial, or legal advice. Investors should seek such professional advice for their particular situation and jurisdiction.
Digital Asset Risk Disclosures
Many digital assets, including Bitcoin, have experienced significant volatility in trading prices in recent periods and may continue to experience such volatility in the future. Such volatility in digital asset prices could have a material adverse effect on the value of the Fund and the shares could lose all or substantially all of their value.
Digital assets represent a new and rapidly evolving industry. The value of the Fund depends, among other things, on the acceptance of the digital assets in general and Bitcoin in particular, the capabilities and development of blockchain technologies and the fundamental investment characteristics of Bitcoin.
Digital asset networks are developed and maintained by a diverse set of contributors and the perception that certain contributors will no longer contribute to the network or may decrease their contributions to, or involvement with the network could have an adverse effect on the market price of the related digital asset.
Digital assets may have concentrated ownership and large sales or distributions by holders of such digital assets could have an adverse effect on the market price of such digital assets.
The Fund holds Bitcoin; however, an investment in the Fund is not a direct investment in Bitcoin. As a non-diversified and single industry fund, the value of the shares may fluctuate more than shares invested in a broader range of industries. Because the value of the Fund is correlated with the value of Bitcoin, it is important to understand the investment attributes of, and the market for, the underlying digital asset (Bitcoin). Please consult with your financial professional.
A substantial direct investment in digital assets may require expensive and sometimes complicated arrangements in connection with the acquisition, security and safekeeping of the digital asset and may involve the payment of substantial fees to third party service providers through cash payments of U.S. dollars.
Regulation of digital assets, including Bitcoin, continues to evolve across different jurisdictions worldwide, which may cause uncertainty and insecurity as to the legal and tax status of a given digital asset. As Bitcoin and digital assets have grown in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies have been examining the operations of digital asset networks, digital asset users and the digital asset spot market. Many of these state and federal agencies have brought enforcement actions and issued advisories and rules relating to digital asset markets. Ongoing and future regulatory actions with respect to digital assets generally or any single digital asset in particular may alter, perhaps to a materially adverse extent, the nature of an investment in the Fund.
The Delegated Sponsor does not store, hold, or maintain custody or control of the Fund's digital assets but instead has entered into Custodial Services Agreements with a third parties to facilitate the security of its Bitcoin. The Custodians control and secure the Fund's Bitcoin, in segregated custody accounts to store private keys, which allows for the transfer of ownership or control of the Fund's Bitcoin, on the Fund's behalf. If a Custodian resigns or is removed by the Delegated Sponsor or otherwise, without replacement, it could trigger early termination of the Fund.
The net assets of the Fund and its shares are valued on a daily basis with reference to CoinDesk Bitcoin Benchmark Rate, a standardized reference rate published by COINDESK®. COINDESK® and the Fund's applicable reference rate (the "Index") are trade or service marks of CoinDesk Indices, Inc. (with its affiliates, including CC Data Limited, "CDI"), and/or its licensors. CDI or CDI's licensors own all proprietary rights in the Index. CDI is not affiliated with Morgan Stanley Investment Management Inc. and does not approve, endorse, review, or recommend the Fund. CDI does not guarantee the timeliness, accurateness, or completeness of any data or information relating to any Index and shall not be liable in any way to Morgan Stanley Investment Management Inc., investors in or holders of any of the Fund or other third parties in respect of the use or accuracy of any Index or any data included therein.
Before making an investment decision, you should carefully consider the risk factors and other information included in the prospectus.
Investors should be aware that investing in MSBT is not equivalent to investing directly in bitcoin.
Forward-Looking Statements
Certain statements contained herein and in any related materials may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can generally be identified by the use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," or similar expressions, or the negative of such terms. These statements are based on current expectations, estimates, assumptions, and projections and are subject to significant risks, uncertainties, and other factors that may cause actual results, performance, or developments to differ materially from those expressed or implied by such statements. Forward-looking statements speak only as of the date on which they are made. The Fund undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required by applicable law.
Risk Considerations
Digital assets are highly volatile and unpredictable. Their value is influenced but not limited to, by supply and demand, investor confidence and their willingness to purchase it using traditional currencies, inflation, interest rates, currency exchange rates, changing regulations in the U.S. and abroad, and economic trends. Investors also face risks such as price swings, flash crashes, fraud, and cybersecurity threats. Digital assets may be more vulnerable to market manipulation than securities.
Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network.
Cryptocurrency (notably, Bitcoin) operates as a decentralized, peer-to-peer financial exchange and value storage that is used like money. It is not backed by any government. Federal, state or foreign governments may restrict the use and exchange of cryptocurrency. Cryptocurrency may experience very high volatility.
NOT FDIC INSURED. OFFER NO BANK GUARANTEE. MAY LOSE VALUE. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. NOT A DEPOSIT.
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