Phong Le, President and CEO of Strategy, the world’s first and largest Bitcoin treasury firm, has indicated that Morgan Stanley’s proposed Bitcoin ETF could potentially unlock approximately $160 billion in demand, based on a conservative portfolio allocation scenario.
Le stated on X, “Morgan Stanley Wealth Management oversees about $8 trillion in assets under management (AUM) and recommends a Bitcoin allocation of 0–4%. A 2% allocation would equate to $160 billion, approximately three times the size of IBIT. MSBT: Monster Bitcoin.”
This assertion suggests that even a modest 2% Bitcoin allocation across Morgan Stanley’s $8 trillion wealth platform could channel around $160 billion into Bitcoin, significantly surpassing the current assets of established ETFs such as BlackRock’s iShares Bitcoin Trust.
Le’s commentary emerged as Morgan Stanley progressed with plans for its own spot BTC ETF, unveiling new details in a filing with the U.S. Securities and Exchange Commission. The fund is expected to trade under the ticker MSBT, a designation that Le interprets as an indication of the substantial potential for institutional demand.
Morgan Stanley’s amended S-1 filing outlines a structure consistent with the expanding category of spot BTC ETFs. The trust is expected to list on NYSE Arca, comprising a 10,000-share creation unit and an initial seed basket of 50,000 shares, with projected fundraising around $1 million. The bank also disclosed the purchase of two shares earlier this month for audit purposes.
Key service providers involved align with those commonly utilized across the ETF ecosystem. BNY Mellon will serve as cash custodian, administrator, and transfer agent, while Coinbase is designated as the prime broker and custodian for the fund’s Bitcoin holdings.
The proposed product aims to hold BTC directly, reflecting the model that has characterized the recent wave of U.S.-listed spot ETFs.
Capital Managers Are Transitioning to Bitcoin
Le’s perspective raises a broader question regarding the potential capital wealth managers might allocate if Bitcoin becomes a standard component in portfolio construction. Morgan Stanley Wealth Management, managing trillions in client assets, has indicated that the exposure to Bitcoin could range from zero to four percent, tailored to individual client profiles.
Even a midpoint allocation, as Le pointed out, would suggest inflows that surpass the assets of existing flagship products like the iShares Bitcoin Trust.
Adoption has so far progressed in phases. Since the launch of spot BTC ETFs in 2024, this category has attracted more than $50 billion in inflows, largely driven by self-directed investors. In advisory channels, however, adoption remains uneven, influenced by internal policies, risk assessments, and client demand.
Morgan Stanley has already taken significant steps in this direction by allowing brokerage clients to access spot BTC ETFs and progressively expanding availability. The MSBT filing indicates a potential shift from merely distributing the product to outright ownership, a transition that could enhance the bank’s role in the market pending regulatory approval.
The SEC has yet to provide a timeline for its decision, and approval is not guaranteed. Nonetheless, the application signifies a significant milestone: a major U.S. bank striving to introduce its own spot Bitcoin ETF within a market it previously approached with caution.
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