Morgan Stanley’s bitcoin ETF draws $34 million on day one

Morgan Stanley’s low-fee bitcoin ETF debuted with strong early trading, signaling demand as competition shifts to cost and distribution.

Morgan Stanley’s new spot bitcoin ETF, trading under the ticker MSBT, launched Tuesday with more than 1.6 million shares traded and about $34 million in inflows.
The fund tracks the CoinDesk Bitcoin Benchmark 4 PM New York Settlement Rate and charges a 0.14 percent expense ratio, making it the cheapest product in its category.
Backed by Morgan Stanley’s vast wealth management network, MSBT could gain traction as more investors access bitcoin through financial advisors, though its ability to sustain early momentum in a market led by a few large players remains uncertain.

Morgan Stanley’s spot bitcoin exchange-traded fund (ETF) began trading Wednesday with solid early activity, logging more than 1.6 million shares traded and roughly $34 million in inflows, the bank said.

The fund, listed under the ticker MSBT, tracks the CoinDesk Bitcoin Benchmark 4 PM New York Settlement Rate and charges a 0.14% expense ratio. It is the cheapest fund in the category, offering a clear, if narrow, pricing advantage to competitors.

MSBT entered the market with a different strength than others: distribution. Morgan Stanley’s wealth management arm oversees trillions of dollars in client assets and operates one of the largest financial advisor networks in the industry. That reach could help the fund gain traction as more investors access bitcoin through advisors rather than direct trading platforms.

Some experts anticipate the fund to draw capital from existing products, especially BlackRock's iShares Bitcoin Trust (IBIT), the largest spot bitcoin ETF currently on the market. MSBT has a lot of catching up to do. IBIT, which launched among nine other ETFs in January 2024, has amassed over $53 billion in assets, quickly becoming the asset manager's most successful ETF.

Wednesday's trading offers an early signal of demand, though it remains to be seen whether MSBT can sustain momentum in a market dominated by a handful of large players.
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