Morgan Stanley Bitcoin Inflow Could Triple BlackRock IBIT – Bitcoin News

Morgan Stanley filed an amended S-1 form with the Securities and Exchange Commission (SEC) on March 17, 2026, for its proposed spot Bitcoin ETF, the Morgan Stanley Bitcoin Trust (MSBT), poised to trade on the NYSE Arca under the ticker symbol MSBT. This marks the first instance of a major U.S. Bank directly issuing a Bitcoin ETF, shifting from a previous strategy of recommending ETFs from other companies to its wealth management clients.

The move places Morgan Stanley in direct competition with established players like BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC. According to filings, MSBT intends to raise $1 million through the sale of 50,000 initial seed shares to designated sponsors. The proceeds will be used to acquire Bitcoin for the trust.

A key component of Morgan Stanley’s strategy is a planned fee waiver on the first $5 billion invested in MSBT, mirroring the launch tactics employed by BlackRock with IBIT. Although, Morgan Stanley’s potential to attract inflows significantly exceeds that of its competitor. Phong Le, CEO of Strategy, estimates that a 2% allocation of Morgan Stanley’s $8 trillion in assets under management (AUM) towards Bitcoin could result in approximately $160 billion in inflows – roughly three times the current size of IBIT.

This “monster Bitcoin” strategy, as described by Le, signals a substantial bet on the cryptocurrency’s future. Morgan Stanley’s filing indicates the use of BNY Mellon and Coinbase Custody Trust Company to secure the fund’s Bitcoin holdings, with Fidelity joining as an additional custodian. The amended S-1 filing is the second revision, suggesting ongoing refinement based on regulator feedback and indicating a launch potentially within weeks of the final version.

While other major banks, including Goldman Sachs and JPMorgan Chase, currently limit their involvement in the Bitcoin space to distribution or custody services, Morgan Stanley’s direct issuance represents a significant escalation in institutional adoption. The firm previously authorized its financial advisors to recommend crypto funds to clients holding IRAs and 401(k) accounts, suggesting a growing acceptance of digital assets within the traditional financial landscape.

The potential $160 billion demand for MSBT could surpass BlackRock’s IBIT, signaling broader institutional confidence in crypto assets. However, the ETF remains pending regulatory approval before trading can commence.