Morgan Stanley, one of the leading banks in the USA, made an updated application to the US Securities and Exchange Commission (SEC) for the spot Bitcoin ETF. The bank brings together different expertise by appointing both Coinbase Custody Trust Company and BNY Mellon on the custody side of this new fund. With this step, Morgan Stanley aims to become one of the leading US financial institutions in the spot Bitcoin ETF field.
Double-Tier Model in Storage Strategy
In the established structure, the responsibility for storing Bitcoin is shared between Coinbase and BNY Mellon. Coinbase is known for its high experience in cryptocurrencies and has long played an active role in institutional Bitcoin custody. BNY Mellon, on the other hand, has a history of more than two centuries in traditional asset custody and management. BNY Mellon will also be involved in fund management, transfer transactions and cash transactions. Thanks to this model, Morgan Stanley works with institutions that are both experienced in the field of crypto and reliable in the traditional finance world.
Internal Structure Goal for Digital Assets
Morgan Stanley plans to continue this process, which it started with external partners, with its own digital asset institution in the long term. In early 2026, the bank applied to the Office of the Comptroller of the Currency to establish a national digital trust authority. If approved, Morgan Stanley will have the opportunity to offer custody, trading and staking services entirely within its own organization through Digital Trust. This development will reduce dependence on third-party providers such as Coinbase. Completion of the process depends on the decision of the regulatory authorities.
New Doors Opening to Individual Investors
Morgan Stanley, on the other hand, removed some restrictions on cryptocurrency investments for its retail clients. As of early 2026, financial advisors working at the institution can offer crypto asset-based ETPs to clients across all account types, including retirement accounts. With this change, the bank aligns with other major financial institutions in facilitating access to crypto following the approval of spot Bitcoin ETFs in the US in January.
The structure, established in cooperation with Coinbase and BNY Mellon, enables Morgan Stanley advisors to recommend their own Bitcoin fund to different types of clients and, over time, to provide the custody service entirely in their own digital unit. In this way, all income channels, from consultancy to custody services, remain within the bank.
On the storage side of the fund, the “cold storage” method will be preferred. Thus, private keys will be kept away from the internet connection; This is widely known as the standard in institutional Bitcoin custody. The daily net asset value of the fund will be calculated using CoinDesk Bitcoin Benchmark, based on data received from major spot exchanges at 16:00 every day.
Morgan Stanley’s approach follows the familiar roadmap for traditional financial institutions entering new asset classes. In the first stage, the market is entered with external partners, and in the following period, it is aimed to transfer operational processes and revenues completely to the internal structure.
In another remarkable development in the USA on the same day, Donald Trump had a private meeting with Coinbase CEO Brian Armstrong. It is reported that after the meeting, he pressured the banks to take a more constructive approach to providing a legal framework for the crypto industry. Morgan Stanley’s new application also shows that the financial sector is developing simultaneously with political conflicts on the one hand and innovative products on the other.
Not all industry actors are against crypto, the main concern arises in applications that pose the risk of deposit loss. Bitcoin ETFs, on the other hand, are generally associated with increasing assets under management; Different business models create different priorities.
