Morgan Stanley has launched a cryptocurrency trading pilot on its E*Trade platform, charging retail users 0.50% per transaction. The fee undercuts standard pricing at Coinbase, Robinhood, and Charles Schwab, the Wall Street bank confirmed.
Limited Pilot, Broader Rollout Ahead
The pilot remains limited for now, though all 8.6 million E*Trade clients are expected to gain access later this year. Schwab's recently launched crypto brand charges 0.75% per trade. However, platforms such as Kraken Pro, Binance.US, and certain Coinbase Advanced tiers still offer cheaper execution for advanced traders. Bloomberg first reported the pilot details, later confirmed by a Morgan Stanley spokesperson.
Low-Cost Bitcoin ETF Draws Inflows
The trading pilot follows the launch of Morgan Stanley's spot Bitcoin ETF, MSBT, on NYSE Arca in April. The ETF carries a 0.14% management fee, among the lowest in the market. According to Farside Investors, MSBT has recorded $92 million in net inflows since launch, including $30.6 million on its first trading day. Bloomberg ETF analyst Eric Balchunas called the launch significant given Morgan Stanley's $7 trillion in assets under management and its vast advisory network.
Wall Street Competition Heats Up
Morgan Stanley joins a wave of major financial institutions expanding crypto offerings. Goldman Sachs recently filed with the SEC for a Bitcoin Premium Income ETF tied to options strategies. BNY Mellon continues to operate its digital asset custody platform launched in 2022, allowing select institutional clients to hold and transfer Bitcoin and Ether. The E*Trade pilot underscores the intensifying battle among traditional banks, brokerages, and crypto exchanges for retail trading volumes and digital asset revenue.