Morgan Stanley's spot bitcoin exchange-traded fund, trading under the ticker MSBT, pulled in more than $100 million within its first week on the market. Launched on April 8, the fund tracks the CoinDesk Bitcoin Benchmark 4 PM New York Settlement Rate and charges a 0.14% expense ratio—the lowest among all U.S. spot bitcoin ETFs. Comparable products from issuers like BlackRock and Fidelity charge fees ranging from 0.25% to 0.9%.
Distribution muscle over fee cutting
Cost alone doesn't explain the early traction. MSBT draws strength from Morgan Stanley's massive wealth management network: thousands of financial advisors oversee trillions in client assets, providing a direct sales channel to investors who prefer managed portfolios over self-custodied crypto. Amy Oldenburg, the bank's head of digital assets, told Bloomberg that MSBT is already the most successful ETF launch in the firm's history.
Some analysts expect MSBT to cannibalize assets from existing funds like BlackRock's iShares Bitcoin Trust (IBIT), which holds over $53 billion. But the product may also expand the overall market by pulling in new participants who were waiting for a trusted Wall Street brand.
Goldman, BlackRock pivot to structured products
Morgan Stanley's move has already triggered responses. Earlier this week, Goldman Sachs filed for a Bitcoin Premium Income ETF, marking its first direct foray into crypto investment products. The fund would use options strategies to generate yield rather than relying purely on price appreciation. BlackRock is preparing a similar income-focused ETF, signaling that competition is shifting from plain spot exposure to yield-generating structures.
“Goldman's filing shows another blue-chip institution concedes it can no longer ignore bitcoin,” said Nate Geraci, president of NovaDius Wealth Management. “With Morgan Stanley's entrance, other legacy firms realize they can't just sit still. I wouldn't be surprised to see JPMorgan follow soon.” The price war ignited by Morgan Stanley is now forcing rivals to compete on both fees and product design.