Morgan Stanley Launches Low-Cost 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 robust 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 charges a competitive 0.14% expense ratio, rendering it the most affordable product in its category. This pricing advantage is expected to intensify competition among issuers. MSBT benefits from Morgan Stanley's vast wealth management business, which oversees trillions of dollars in client assets, providing a direct channel to investors who may prefer gaining exposure to bitcoin through managed portfolios. As the spot bitcoin ETF market evolves, MSBT's early success is notable, although it remains smaller than BlackRock's iShares Bitcoin Trust, which has amassed over $53 billion in assets. Morgan Stanley's head of digital assets, Amy Oldenburg, stated that MSBT has become the firm's most successful ETF launch to date. Analysts anticipate that MSBT may attract assets from existing funds, particularly among clients within Morgan Stanley's advisory ecosystem, while also potentially expanding the overall market by drawing in new investors. The move has prompted responses from peers, with Goldman Sachs filing for a Bitcoin Premium Income ETF that would utilize options strategies to generate income, reflecting a growing trend toward packaging bitcoin into products that produce steady cash flow. BlackRock is also preparing a similar income-focused ETF, highlighting the shift in competition beyond simple spot exposure into more structured offerings. The development signifies a broader Wall Street shift, with legacy financial institutions acknowledging the importance of bitcoin and preparing to launch their own crypto investment products.