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

Morgan Stanley has introduced its spot bitcoin exchange-traded fund, MSBT, which has amassed over $100 million in its first week of trading, commencing on April 8. The fund tracks the CoinDesk Bitcoin Benchmark 4 PM New York Settlement Rate and charges a 0.14% expense ratio, making it the most affordable option in its category and intensifying competition among issuers. With its vast wealth management business overseeing trillions of dollars in client assets, MSBT benefits from a built-in distribution advantage, providing a direct channel to investors through Morgan Stanley's network of financial advisors. While MSBT's initial inflows are notable, it still lags behind BlackRock's iShares Bitcoin Trust, which has accumulated 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 MSBT may draw 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 filing for a Bitcoin Premium Income ETF, which would utilize options strategies to generate income. BlackRock is also preparing a similar income-focused ETF, highlighting the shift in competition toward more structured offerings. The development signifies a broader Wall Street shift, with legacy firms acknowledging the growing importance of bitcoin and potentially paving the way for other institutions to follow suit.