Phong Le is the President and CEO at Strategy, which was founded in 2009 and has become one of the largest Bitcoin Treasury firms. He said Morgan Stanley’s bitcoin ETF proposal would be a bad idea. could unlock As much as $160 Billion in Demand under a modest allocation of portfolio scenario.
“Morgan Stanley Wealth Management oversees about $8 trillion in AUM and recommends 0–4% bitcoin allocation,” Le wrote on X. “A 2% allocation would represent $160 billion, about three times the size of IBIT. MSBT: Monster Bitcoin.”
Le’s statement is that Morgan Stanley’s 8 trillion dollar wealth platform, with a modest allocation of just 2% Bitcoin, could bring in $160 billion, a sum far greater than existing bitcoin ETFs. BlackRock’s iShares Bitcoin Trust.
Morgan Stanley was the source of this comment advanced plans In a new filing to the U.S. Securities and Exchange Commission, Le revealed details about its own spot BTC ETF. Le referred to the MSBT ticker as an acronym for institutional demand.
Morgan Stanley’s S-1 amended outlines the structure of a growing class spot BTC exchange-traded funds. The trust is set to list On NYSE Arca, with a creation unit of 10,000 shares and an initial basket of 50,000 share expected to raise around $1 million. In addition, the bank disclosed that it had purchased two additional shares in early October for audit purposes.
The key service providers are the same as those in use across the ETF eco-system. BNY Mellon, Coinbase, and BNY Mellon’s Transfer Agent will serve as the funds cash custodians, administrators, and transfer agents.
This product will hold BTC in a direct manner, following the same structure as the U.S. listed spot ETFs.
The capital management industry is migrating towards bitcoin
Le’s questioning raises a bigger issue that goes beyond filing mechanics: How much capital do wealth managers have? may allocate If BTC is a part of a portfolio, it will be incorporated into the standard. Morgan Stanley Wealth Management with its trillions of dollars in assets has said that exposure to bitcoin can vary from zero up to four percent, depending on the profile of a client.
Le stated that a midpoint investment would imply flow sizes exceeding those of current flagship products, such as iShares Bitcoin Trust.
The adoption of spot BTC ETFs has been gradual. The category of spot BTC-based ETFs has seen more than 50 billion dollars in flows since its launch in 2024. This is largely due to self directed investors. In advisory channels, the uptake is uneven and influenced by client demands, internal policies, and risk models.
Morgan Stanley already took steps towards this direction by offering brokerage clients the ability to purchase spot BTC ETFs. Over time, Morgan Stanley will also be expanding availability. MSBT’s filing shows a shift in focus from distribution to ownership, which could enhance the bank’s position on the market.
SEC did not provide a timetable for its decision and it is unlikely that approval will be granted. This application represents a significant development. A large U.S. financial institution is now seeking to create its own Bitcoin ETF on a marketplace it had previously avoided.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: bitcoinmagazine.com
