Morgan Stanley Launches Lowest-Fee Bitcoin ETF, Attracts $100 Million in First Week

Morgan Stanley's spot bitcoin exchange-traded fund, MSBT, has secured over $100 million in investments within its first week of trading, demonstrating strong initial demand for the bank's latest foray into digital assets. The fund, which commenced trading on April 8, tracks the CoinDesk Bitcoin Benchmark 4 PM New York Settlement Rate and imposes a 0.14% expense ratio, making it the most affordable product in its category and giving it a pricing advantage amidst intensifying competition among issuers. MSBT benefits from Morgan Stanley's vast wealth management business, which oversees trillions of dollars in client assets and provides a direct channel to investors through its network of financial advisors. This distribution advantage could be crucial as the spot bitcoin ETF market evolves. Although MSBT's early inflows are notable, the fund remains significantly smaller than BlackRock's iShares Bitcoin Trust, which has amassed over $53 billion in assets since its launch in January 2024. According to Morgan Stanley's head of digital assets, Amy Oldenburg, MSBT has become the firm's most successful ETF launch to date. Analysts anticipate that Morgan Stanley's product may attract assets from existing funds, particularly among clients within its advisory ecosystem, while also potentially expanding the overall market by attracting new investors. The move has prompted responses from peers, with Goldman Sachs recently filing for a Bitcoin Premium Income ETF, marking one of its first direct entries into the crypto investment space. This trend reflects a growing shift toward packaging bitcoin into products that generate steady income, rather than relying solely on price gains. As inflows continue to build and new products emerge, Wall Street's role in shaping how investors access bitcoin is rapidly expanding.