Morgan Stanley picks Coinbase, BNY Mellon for Bitcoin ETF
6.6 Investments Morgan Stanley filed for a Bitcoin Trust ETF, naming Coinbase Custody and BNY Mellon as custodians. Most bitcoin will be held in cold storage, with BNY Mellon also handling fund administration.
Morgan Stanley has submitted a prospectus to the U.S. Securities and Exchange Commission for its proposed Bitcoin Trust ETF. The filing reveals that Coinbase Custody and Bank of New York Mellon (BNY Mellon) will serve as custodians for the fund’s bitcoin holdings. Most assets will be stored in offline cold storage vaults to reduce hacking risks, while a smaller portion may be temporarily moved to trading wallets during ETF share creation or redemption. BNY Mellon will also act as fund administrator, transfer agent, and cash custodian, managing accounting, shareholder records, and cash flows. The ETF is structured as a passive investment vehicle that directly holds bitcoin, providing investors with exposure to bitcoin without requiring direct ownership. The trust’s net asset value will be calculated using a CoinDesk index. The filing notes that custody insurance is shared among customers and may not cover all losses. Morgan Stanley has also applied to launch the Morgan Stanley Digital Trust.
