Morgan Stanley Selects Coinbase and BNY Mellon for Bitcoin ETF Custody

Morgan Stanley has named BNY Mellon and Coinbase as custodians for its proposed Bitcoin exchange-traded fund, according to a recent filing with the U.S. Securities and Exchange Commission. The move formalizes the bank’s entry into the spot Bitcoin ETF market as institutional demand for digital assets shows renewed momentum.

Under the filing, both custodians will safeguard the fund’s Bitcoin holdings primarily in cold storage, an offline method designed to reduce cybersecurity risks. A limited portion of assets may be transferred to hot wallets to facilitate share creation and redemption. BNY Mellon will act in its capacity as a New York–chartered bank, while Coinbase will operate through its regulated trust entity.

Institutional Crypto Adoption Gains Pace

The ETF application comes as Bitcoin fund flows have turned positive after several weeks of sustained outflows. Recent inflows into major spot Bitcoin products have helped stabilize sentiment following a prolonged market correction that left Bitcoin significantly below its previous peak.

Morgan Stanley previously filed for spot Bitcoin and Solana exchange-traded funds, signaling a broader digital asset strategy. Even if the fund does not immediately rival the largest Bitcoin ETFs by assets under management, the launch strengthens the bank’s foothold in crypto markets and expands its exposure to tokenized assets and related financial infrastructure.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.