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Phong Le, President and CEO of Strategy, the world’s first and largest Bitcoin investment fund, said Morgan Stanley is interested in a bitcoin ETF. can open it $160 billion in funds sought under the distribution sub-section.
“Morgan Stanley Wealth Management manages about $8 trillion in AUM and recommends a 0-4% allocation to bitcoin,” Le wrote on X. “A 2% allocation would represent $160 billion, nearly three times the size of IBIT. MSBT: Monster Bitcoin.”
In other words, Le says that even a small investment of 2% of bitcoin on Morgan Stanley’s wealth platform of $ 8 trillion can drive about $ 160 billion in bitcoin, exceeding the size of existing ETFs. BlackRock’s iShares Bitcoin Trust.
Comment came as Morgan Stanley advanced plans on its BTC ETF site, it is disclosing new filings with the US Securities and Exchange Commission. The fund will trade under the ticker MSBT, a symbol that Le cast as a summary of the amount of the institutions’ demand.
Morgan Stanley’s S-1 filings show the structure that characterizes the growing group of BTC ETFs. Trust is set to list on the NYSE Arca with an initial public offering of 10,000 shares and an initial seed basket of 50,000 shares, expected to raise approximately $1 million. The bank also disclosed that it bought two stocks earlier this month for research purposes.
The key contributors are the same as those used in the entire ETF universe. BNY Mellon will act as a fund manager, administrator, and transfer agent, while Coinbase is set to serve as a prime broker and bitcoin fund manager.
The product can hold BTC directly, matching the structure that explains how US-listed ETFs are increasing.
Capital managers are moving to bitcoin
Our analysis points to the main question that lies beyond the savings system: the number of wealth managers can distribute if BTC becomes a permanent part of the portfolio. Morgan Stanley Wealth Management, with billions in client assets, has indicated that exposure to bitcoin can range from zero to 4 percent depending on the client’s profile.
Even a split in the middle, as Le said, could mean a move that continues to grow in existing assets such as the iShares Bitcoin Trust.
So far, adoption has been slow. Since the launch of BTC ETFs in 2024, the group has attracted more than $50 billion in investment, largely led by private investors. Within the process of developing advice, emotion remains unstructured, shaped by internal processes, risk models, and client needs.
Morgan Stanley has already taken this step, allowing brokerage clients to access BTC ETFs with greater availability over time. MSBT’s listing marks a shift from distribution to sole ownership of the product, a move that could sink the bank’s share of the market if approval is granted.
The SEC has not given a timeline for the decision, and approval is not guaranteed. However, the project represents a notable development: a major US bank wants to release its own bitcoin ETF on a market that has returned cautiously.
