Morgan Stanley's Bitcoin Trust Integrates Crypto-Native Custody into Brokerage Accounts

Investors gain spot bitcoin exposure through standard brokerage accounts. The Morgan Stanley Bitcoin Trust (MSBT), launched on April 8, tracks the price of the bitcoin using the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate. The trust holds bitcoin directly for investors, splitting operational duties between a crypto-native firm and a traditional bank. Coinbase Custody Trust Company manages the crypto custody and prime-broker operations. BNY Mellon handles fund administration, transfer agency, cash custody, accounting, and shareholder records. To reduce hacking risk, most of the trust's bitcoin holdings are kept in offline cold storage, with a smaller portion moved into hot wallets when authorized participants create or redeem shares in cash or in-kind. This makes MSBT the first cryptocurrency ETP offered by a U.S. bank-affiliated asset manager.