Morgan Stanley Investment Management Enters Digital Investments Universe With Launch of Morgan Stanley Bitcoin Trust
MSIM is the first
“We are proud to introduce MSBT to the marketplace and believe this new ETP aligns with long-term trends in financial innovation and serves to strengthen the range of investments we provide investors,” said
“ETPs remain a powerful way for investors to gain exposure to new asset classes within a transparent and regulated framework,” said
The addition of MSBT expands MSIM’s exchange-traded capabilities and reinforces the ongoing efforts to provide broader access to a wide range of investment offerings across traditional and emerging asset classes. The MSBT launch builds on Morgan Stanley’s recent investments across the digital asset ecosystem, including the appointment of dedicated leadership to guide firmwide digital asset strategies and ongoing efforts to expand institutional-grade capabilities across custody, trading and product development.
“Digital assets are increasingly intersecting with traditional markets, and our focus is on helping clients access that evolution through structures they understand and trust,” said
MSBT seeks to track the performance of bitcoin, as measured by the performance of the CoinDesk Bitcoin Benchmark
Coinbase and BNY have been selected to provide digital asset custody services for MSBT. BNY also serves as the administrator and transfer agent and will provide accounting, recordkeeping and cash management services.
Launched in early 2023, MSIM's suite of ETFs recently surpassed
About
About
IMPORTANT NOTICE
A registration statement relating to these securities has been declared effective by the U.S. Securities and Exchange Commission (“SEC”). Before you invest, you should read the
prospectus
in that registration statement and other documents MSBT has filed with the
An investment in MSBT involves a high degree of risk, including the volatility of bitcoin, potential deviations between the market price of the MSBT’s shares and MSBT’s net asset value, regulatory uncertainty, custody and operational risks, and the possibility of a total loss of investment. MSBT is not registered under the Investment Company Act of 1940, as amended. Neither the
Morgan Stanley Bitcoin Trust ETF Disclosure
Investing in digital assets involves risk, including possible loss of principal. An investment in Morgan Stanley Bitcoin Trust ETF (“MSBT” or the “Fund”) is subject to a high degree of risk and heightened volatility. MSBT is not suitable for any investor that cannot afford loss of the entire investment.
The Fund has filed a registration statement (including a prospectus) with the
This information must be preceded or accompanied by a prospectus, click here to view or download prospectus. We advise you to consider the fund's objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the fund. Please read the prospectus carefully before you invest.
The Fund is not registered under the Investment Company Act, 1940 (the “40 Act”) and is not subject to regulation under the 40 Act, unlike most mutual funds or ETFs. The Fund may trade at a premium or discount to its net asset value. The Fund is new and has a limited operating history upon which investors may base an evaluation of its likely performance.
The value of the Fund relates directly to the value of the underlying digital asset it holds, the value of which is highly volatile and subject to fluctuations due to a number of factors.
The Fund relies on third party service providers to perform certain functions essential to the affairs of the Trust. Some of these service providers may not be subject to federal regulation and oversight and the replacement of such service providers could pose a challenge to the safekeeping of the digital asset and to the operations of the Fund.
No guarantee or representation is made that the Fund’s investment strategy, including, without limitation, its investment objectives or strategies, will be successful, and investment results may vary substantially over time. Nothing herein is intended to imply that the Fund’s investment methodology or that investing may be considered “conservative,” “safe,” “risk free,” or “risk averse.”
This material is not an offer or solicitation of any kind to buy or sell any securities outside of
Digital Asset Risk Disclosures
Many digital assets, including Bitcoin, have experienced significant volatility in trading prices in recent periods and may continue to experience such volatility in the future. Such volatility in digital asset prices could have a material adverse effect on the value of the Fund and the shares could lose all or substantially all of their value.
Digital assets represent a new and rapidly evolving industry. The value of the Fund depends, among other things, on the acceptance of the digital assets in general and Bitcoin in particular, the capabilities and development of blockchain technologies and the fundamental investment characteristics of Bitcoin.
Digital asset networks are developed and maintained by a diverse set of contributors and the perception that certain contributors will no longer contribute to the network or may decrease their contributions to, or involvement with the network could have an adverse effect on the market price of the related digital asset.
Digital assets may have concentrated ownership and large sales or distributions by holders of such digital assets could have an adverse effect on the market price of such digital assets.
The Fund holds Bitcoin; however, an investment in the Fund is not a direct investment in Bitcoin. As a non-diversified and single industry fund, the value of the shares may fluctuate more than shares invested in a broader range of industries. Because the value of the Fund is correlated with the value of Bitcoin, it is important to understand the investment attributes of, and the market for, the underlying digital asset (Bitcoin). Please consult with your financial professional.
A substantial direct investment in digital assets may require expensive and sometimes complicated arrangements in connection with the acquisition, security and safekeeping of the digital asset and may involve the payment of substantial fees to third party service providers through cash payments of
Regulation of digital assets, including Bitcoin, continues to evolve across different jurisdictions worldwide, which may cause uncertainty and insecurity as to the legal and tax status of a given digital asset. As Bitcoin and digital assets have grown in both popularity and market size, the
The Delegated Sponsor does not store, hold, or maintain custody or control of the Fund’s digital assets but instead has entered into Custodial Services Agreements with a third parties to facilitate the security of its Bitcoin. The Custodians control and secure the Fund’s Bitcoin, in segregated custody accounts to store private keys, which allows for the transfer of ownership or control of the Fund’s Bitcoin, on the Fund’s behalf. If a Custodian resigns or is removed by the Delegated Sponsor or otherwise, without replacement, it could trigger early termination of the Fund.
The net assets of the Fund and its shares are valued on a daily basis with reference to CoinDesk Bitcoin Benchmark Rate, a standardized reference rate published by COINDESK®. COINDESK® and the Fund's applicable reference rate (the "Index") are trade or service marks of
Before making an investment decision, you should carefully consider the risk factors and other information included in the prospectus.
Investors should be aware that investing in MSBT is not equivalent to investing directly in bitcoin.
Forward-Looking Statements
Certain statements contained herein and in any related materials may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can generally be identified by the use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," or similar expressions, or the negative of such terms. These statements are based on current expectations, estimates, assumptions, and projections and are subject to significant risks, uncertainties, and other factors that may cause actual results, performance, or developments to differ materially from those expressed or implied by such statements. Forward-looking statements speak only as of the date on which they are made. The Fund undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required by applicable law.
Risk Considerations
Digital assets are highly volatile and unpredictable. Their value is influenced but not limited to, by supply and demand, investor confidence and their willingness to purchase it using traditional currencies, inflation, interest rates, currency exchange rates, changing regulations in the
Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network.
Cryptocurrency (notably, Bitcoin) operates as a decentralized, peer-to-peer financial exchange and value storage that is used like money. It is not backed by any government. Federal, state or foreign governments may restrict the use and exchange of cryptocurrency. Cryptocurrency may experience very high volatility.
NOT FDIC INSURED. OFFER NO BANK GUARANTEE. MAY LOSE VALUE. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. NOT A DEPOSIT.
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