The conversions bring Morgan Stanley's total ETF lineup to 14 funds.
GSAM is one of several firms looking to make deeper inroads into a booming corner of money management.
The $22.8 billion Grayscale Bitcoin Trust has seen $7.4 billion exit across 30 trading days as of Friday.
The $30 billion RIA platform took a pass on the six other funds in the fledgling bitcoin ETF market.
A multi-share class structure once exclusive to Vanguard is now open to rivals.
Morgan Stanley has filed with the SEC to replicate a Vanguard fund long protected by patents.
The new fund launches into a stock market dominated by a handful of giant technology companies.
Fidelity and BlackRock's spot bitcoin ETFs have taken 70% of the inflows into the new products.
Vanguard has decided to completely ban crypto products from its platform, unlike its peers.
A consistent bid from its sister fund could give the ARK 21 Shares Bitcoin ETF a leg up.