# Morgan Stanley Bitcoin Trust

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Morgan Stanley Bitcoin Trust).

## Overview

Morgan Stanley Bitcoin Trust is a Delaware statutory trust structured as an exchange-traded fund whose shares trade on NYSE Arca under the ticker MSBT. Sponsored by Morgan Stanley Investment Management, the Trust holds bitcoin and seeks to track the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate, less expenses and liabilities.

## Products & services

• Bitcoin-backed exchange-traded fund shares
• Exposure to the CoinDesk Bitcoin Benchmark
• In-kind share creation and redemption baskets
• Institutional bitcoin custody and administration

- **Bitcoin ETF shares** (95%) — Exchange-traded shares designed to provide investors with bitcoin price exposure.
- **Share creation and redemption** (5%) — Authorized participant transactions that issue or redeem baskets of Trust shares.

- Bitcoin-backed exchange-traded fund shares
- Exposure to the CoinDesk Bitcoin Benchmark
- In-kind share creation and redemption baskets
- Institutional bitcoin custody and administration

## Customers

The Trust serves investors seeking bitcoin exposure through a regulated, exchange-listed security rather than direct ownership and custody of bitcoin. Buyers may include retail investors, wealth managers, institutions, and authorized participants that create or redeem share baskets. Investors use the shares for portfolio exposure, while authorized participants support primary-market liquidity and alignment between market price and NAV.

- **Retail investors** (primary) — Buy listed shares for bitcoin exposure without operating digital-asset wallets or custody arrangements.
- **Institutional investors** (primary) — Use the ETF structure to obtain bitcoin exposure within brokerage, investment, or allocation frameworks.
- **Wealth managers** (secondary) — Use exchange-listed Trust shares to incorporate bitcoin exposure into client portfolios.
- **Authorized participants and market makers** (secondary) — Create, redeem, and trade baskets to facilitate primary- and secondary-market liquidity.

- Retail investors seeking exchange-listed bitcoin exposure
- Institutions allocating to bitcoin through a fund structure
- Wealth managers using shares in client portfolios
- Authorized participants creating and redeeming share baskets
- Market makers supporting secondary-market liquidity

## Geography

The Trust is organized in Delaware, sponsored in the United States, and its shares are listed on NYSE Arca. Its investment exposure is linked to globally traded bitcoin markets, while custody and administration are provided through U.S. and Cayman Islands service entities. The reports do not disclose country-level revenue because the Trust is an investment vehicle rather than an operating business with geographic sales.

- Delaware statutory trust governed under U.S. trust law
- Shares listed and traded on NYSE Arca
- U.S.-based sponsor and fund administration framework
- Bitcoin exposure linked to global digital-asset markets
- Cayman Trustee supports the Trust structure
- No country-level revenue disclosure is provided

## Strategy

The Trust’s strategy is to provide exchange-traded bitcoin exposure while minimizing tracking differences against the CoinDesk Bitcoin Benchmark. Its competitive position depends on Morgan Stanley sponsorship, reliable custody, authorized participant access, and the ability to maintain orderly creation, redemption, and secondary-market trading. Operational focus is therefore centered on asset safekeeping, benchmark implementation, regulatory compliance, and market liquidity.

- **Benchmark tracking** (long-term) — Accurate tracking is central to the Trust’s investment objective and investor value proposition.
- **Custody and operational controls** (long-term) — Secure custody and administration are essential because substantially all assets consist of bitcoin.
- **Primary- and secondary-market liquidity** (medium-term) — Creation, redemption, and trading activity help keep share prices aligned with underlying bitcoin value.
- **Regulatory and distribution infrastructure** (long-term) — Compliance and sponsor resources support continued public offering and exchange trading.

- Track bitcoin performance through the CoinDesk benchmark
- Use ETF trading to simplify investor access to bitcoin
- Maintain institutional custody through Coinbase Custody and BNY
- Support share liquidity through creations and redemptions
- Control tracking difference from fees and operating liabilities
- Preserve exchange listing and regulatory compliance

## Risks

The Trust’s results are directly and substantially driven by bitcoin prices because nearly all assets are invested in bitcoin. Trading, custody, counterparty, regulatory, and benchmark risks can impair the Trust’s ability to maintain liquidity or track NAV, while limited market depth can cause shares to trade at premiums or discounts. The Trust also depends on continued exchange listing, functioning digital-asset markets, and service providers including custodians, administrators, and counterparties.

- **Bitcoin price volatility** [critical] — The Trust holds substantially all assets in bitcoin, so price declines directly reduce NAV and reported results.
- **Digital-asset market liquidity** [high] — Limited trading volume or market makers may prevent transactions at desired prices or impede liquidation.
- **Premium or discount to NAV** [high] — Share supply constraints or weak trading demand can cause market prices to diverge from underlying bitcoin value.
- **Regulatory intervention** [high] — Government or regulatory restrictions could suspend bitcoin trading or limit ETF operations and distribution.
- **Custody and service-provider failure** [high] — Loss, restricted access, or operational failure at bitcoin custodians or administrators could impair the Trust.
- **Exchange listing risk** [medium] — There is no guarantee that shares will remain listed or trade with sufficient liquidity on NYSE Arca.

- Bitcoin price volatility directly changes NAV and operating results
- Limited digital-asset liquidity may delay or worsen transactions
- Shares may trade at premiums or discounts to NAV
- Regulators may restrict bitcoin trading or ETF operations
- Custody or counterparty failures could impair asset access
- NYSE Arca could suspend or discontinue the listing

## Accounting

Bitcoin is valued at fair value under ASC 820, with the principal market and orderly-exit assumptions affecting the reported carrying value of the Trust’s primary asset. Changes in bitcoin prices flow directly into realized and unrealized gains or losses; for example, the 2026 interim period included substantial unrealized depreciation. Bitcoin sold to pay sponsor fees or satisfy redemptions creates realized gains or losses, while share creations and redemptions change net assets and shares outstanding without representing operating revenue.

- **Bitcoin fair value measurement** — Market price changes directly affect assets, NAV, and reported gains or losses.
- **Realized and unrealized bitcoin gains and losses** — Reported results can be highly volatile even without operating activity.
- **Sponsor fee settlement** — Fee payments can create small realized gains or losses and reduce bitcoin holdings.
- **Share creations and redemptions** — Capital transactions affect NAV composition and may generate realized results.

- ASC 820 fair value measurement drives bitcoin carrying values
- Bitcoin price movements create realized and unrealized gains
- Sponsor fees may require bitcoin sales and realized losses
- Redemptions can generate realized gains or losses
- NAV depends on valuation inputs and benchmark pricing
- Share creations and redemptions alter capital balances

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*Last updated: 2026-09-24T11:46:47.383044+00:00*