Morgan Stanley Bitcoin ETF Launches With ₱1.96 billion ($33 million), Lowest Fees
Morgan Stanley's Bitcoin ETF landed in the top 1% of all ETF launches after pulling in ₱1.96 billion ($33 million) on debut day. The fund trades with the lowest fee in the market at 0.14%, undercutting BlackRock and Grayscale.
Key Takeaway
Morgan Stanley undercuts BlackRock with rock-bottom fees, setting up a price war for institutional Bitcoin flows.
Bloomberg Intelligence Senior ETF Analyst Eric Balchunas said the Morgan Stanley Bitcoin Trust debut put it in the top 1% of launches in terms of inflows, with 1.6 million shares changing hands before 1pm on Wednesday. The fund pulled ₱1.96 billion ($33 million) in fresh cash, bringing total assets under management to ₱2.01 billion ($33.8 million).
Bitcoin was trading at ₱4,247,383 ($71,349) at the time of the launch, down from earlier peaks. The fund's 0.14% expense ratio is the lowest among major U.S. spot Bitcoin ETF providers. BlackRock's iShares Bitcoin Trust charges 0.25% while Grayscale's Bitcoin Mini Trust comes in at 0.15%. Edelman Financial Engines Founder Ric Edelman said the move could trigger another price war like the one that erupted when 10 Bitcoin ETFs debuted in January 2024.
Edelman said the massive inflows came entirely from Morgan Stanley clients, proving there's huge demand among wirehouse clients and tremendous support among the firm's 16,000 financial advisors. Morgan Stanley Investment Management Global Head of ETF Strategy Ally Wallace said the fund extends the firm's product offering to meet growing client interest in digital assets. The MSBT trades on NYSE Arca and marks the first spot Bitcoin ETF issued by a major U.S. bank.
This article was written based on reporting from Dlnews.
