As the president and CEO of Strategy company, Phong Le is the head of the institution that holds the most BTC in the world in corporate Bitcoin investments. According to Le’s statements, Morgan Stanley’s prominent spot Bitcoin ETF application could create a demand that could reach 160 billion dollars in a scenario where an average distribution is made in portfolios.
Morgan Stanley’s ETF Plan and Institutional Demand
Morgan Stanley is one of the largest banks in the United States and has approximately $8 trillion in assets under management. The code of the spot Bitcoin ETF product, for which the bank is currently preparing, will be MSBT. According to the application file, the product was designed to be created in units of 10,000 units in the first stage and start with 50,000 shares.
Phong Le pointed out that a 2 percent distribution to Bitcoin in portfolios could create new demand of approximately $160 billion. This amount is approximately three times larger than the iShares Bitcoin Trust, one of the largest spot Bitcoin ETFs currently traded in the market.
Fund Structure and Service Providers
Bitcoin will be held directly in Morgan Stanley’s ETF. For the fund’s administrative services, BNY Mellon undertakes cash custody, management and transfer operations. Coinbase will be responsible for Bitcoin custody and primary intermediary duties. The bank has designed a structure compatible with the new generation spot Bitcoin ETF products in the USA.
The documents detailed plans for a conditional system of creating shares in units and for launching the fund with an initial amount of close to $1 million. Additionally, the bank said it purchased two shares this month for audit purposes.
Investor Interest and Sectoral Reflections
Phong Le emphasized that if Bitcoin is included in corporate portfolios, there could be a serious capital movement throughout the sector. Morgan Stanley portfolio management unit suggested a variable rate between zero and four for Bitcoin, stating that this is determined by the customer risk profile.
Le said, “Morgan Stanley Wealth Management manages $8 trillion in assets and recommends a Bitcoin distribution of 0-4 percent. A rate of 2 percent would correspond to $160 billion. MSBT could be the symbol of this.”
In 2024, there was a total of over $50 billion in fund inflows to spot Bitcoin ETFs in the USA. However, the level of adoption among consultancy customers varies depending on internal policies and demands.
With this product, Morgan Stanley can now take a more decisive position in the market with its own product, while providing its customers with direct access to spot Bitcoin ETFs. The US Securities and Exchange Commission has not yet shared a timetable for the product’s approval process, and it remains unclear what the outcome will be.
