Morgan Stanley recently submitted its application for a proprietary Bitcoin ETF, with its asset custody structure particularly noteworthy. The fund employs a dual-institution collaborative model, with Coinbase Custody Trust Company and BNY Mellon serving as the Bitcoin custodians, responsible for the secure storage of the Bitcoin assets held by the fund. BNY Mellon additionally takes on administrative management, transfer agency, and cash custody responsibilities, covering account records, accounting processes, and cash flow management related to share subscriptions and redemptions.
This combination is not coincidental. Coinbase provides robust digital asset security through its expertise and technological infrastructure in the crypto-native field; meanwhile, BNY Mellon contributes over 240 years of credibility in traditional financial asset services, effectively alleviating compliance and trust concerns regarding crypto assets for conservative institutions such as pension funds and charitable foundations. The synergy between the two perfectly addresses the two core client groups Morgan Stanley aims to attract.
Bitcoin assets will primarily be stored in offline cold wallets, with private keys completely isolated from the internet—this practice aligns with the industry standard for institutional-grade crypto custody, as seen with BlackRock's iShares Bitcoin Trust. The fund's daily net asset value (NAV) will be calculated based on the CoinDesk Bitcoin benchmark price, using the settlement price at 4 PM New York time, which aggregates trading data from major spot exchanges to ensure transparent and market-representative pricing.
It is noteworthy that the collaboration with Coinbase and BNY Mellon is only a transitional phase. In February 2026, Morgan Stanley submitted an application to the Office of the Comptroller of the Currency (OCC) to establish a new national trust bank—Morgan Stanley Digital Trust. If approved, this entity will enable Morgan Stanley to independently provide crypto asset custody, trading, and staking services, gradually reducing reliance on third-party service providers.
This move signifies its strategic intent: to enter the market through external partnerships while simultaneously building internal infrastructure, ultimately achieving comprehensive autonomy in operations. This aligns perfectly with the traditional financial institutions' typical path into emerging asset classes—first leveraging mature platforms for rapid deployment, and once the model matures, internalizing core processes to control profits and risks.
Additionally, beyond the ETF application, Morgan Stanley is also adjusting its product strategy for retail clients. Starting in early 2026, all of its wealth management advisors will be able to recommend crypto asset ETP products to various clients, including retirement account holders, completely lifting previous restrictions on crypto investments. This shift echoes the trend of large wealth management institutions accelerating their embrace of digital assets following the SEC's approval of spot Bitcoin ETFs in January 2024.