Eric Balchunas says Morgan Stanley Spot Bitcoin ETF Edges Closer to Market Debut

Morgan Stanley’s ETF move signals deeper institutional entry as strong inflows persist despite Bitcoin’s 40% decline.

Morgan Stanley’s spot Bitcoin ETF appears ready for its next step toward trading, according to Bloomberg Senior ETF Analyst Eric Balchunas. He flagged that the New York Stock Exchange has officially announced the listing of the bank’s BTC-based fund, which often signals that launch timing is close. The filing trail also shows the U.S. Securities and Exchange Commission process moving forward with an amended S-1.

Wall Street Giant Morgan Stanley Set to Join Bitcoin ETF Race with MSBT

Balchunas disclosed on X that the NYSE has listed Morgan Stanley’s Bitcoin Trust and identified it as expected to trade on NYSE Arca under the ticker MSBT. Morgan Stanley first submitted its application in January.

Morgan Stanley Bitcoin ETF $MSBT got an official listing announcement from NYSE, that typically means launch imminent… pic.twitter.com/SDDVyAGfpJ

— Eric Balchunas (@EricBalchunas) March 25, 2026

More recently, the firm filed an amended S-1 registration statement with the SEC less than a week before the remarks reported here. That update confirmed the NYSE Arca listing plan and the MSBT symbol.

Morgan Stanley’s move stands out because it would mark the first time a major bank joins the spot Bitcoin ETF market. Balchunas described it as a significant step for institutions after years when such a move seemed “unthinkable.”

He also pointed to Morgan Stanley’s broad advisor footprint—16,000 financial advisors managing about $6.2 trillion—framing it as a step beyond the early wave led by other major ETF issuers.

Still, adoption may not mirror the self-directed trend seen elsewhere. A Morgan Stanley executive recently noted that crypto ETF use remains early among financial advisors, who continue assessing how digital assets fit into traditional portfolio models.

Amy Oldenburg, head of digital asset strategy, said most ETF activity on Morgan Stanley’s platform comes from self-directed accounts, with roughly 80% of activity originating there.

Institutional Demand Persists as Bitcoin Weakness Fails to Shake ETF Flows

Morgan Stanley began allowing clients to buy spot Bitcoin ETFs in 2024, then gradually expanded access. That gradual rollout aligns with the bank’s cautious internal assessment of how advisors might treat spot Bitcoin exposures.

Despite Bitcoin’s recent weakness, ETF demand has stayed firm. Bloomberg Intelligence analyst Eric Balchunas called the flow pattern “incredible fortitude,” even as the OG coin posts a 40% drawdown from its October 2025 all-time high of $126,080.

Over the past month, spot Bitcoin ETFs reportedly pulled in nearly $2.5 billion, with nine days of inflows above $150 million and a peak day of about $458.19 million on March 2.