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Home/Markets & Investing/BITCOIN ETF

Morgan Stanley's 0.14% bitcoin ETF could force rivals to cut fees, but liquidity still favors BlackRock

FD

Finley Davenport

Bitcoin ETF · Apr 10, 2026

Morgan Stanley's 0.14% bitcoin ETF could force rivals to cut fees, but liquidity still favors BlackRock

Source: The Digital Ledger Data Terminal

Morgan Stanley’s new bitcoin spot ETF, MSBT, launched on April 8 with a 0.14% expense ratio — the lowest in the U.S. market. That’s 11 basis points below BlackRock’s iShares Bitcoin Trust (IBIT), the dominant player with $55 billion in assets. On its first day, MSBT pulled in $30.6 million in net inflows and traded over 1.6 million shares, a debut Bloomberg analyst Eric Balchunas ranked in the top 1% of all ETF launches.

Related Brief18h ago
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Institutional ETF Inflows Reduce Available Bitcoin Supply

Available Bitcoin supply on exchanges is reduced when authorized participants purchase actual Bitcoin to back new shares generated by ETF inflows. On April 9, U.S. Spot Bitcoin ETFs recorded $358.1 million in net inflows, led by BlackRock’s iShares Bitcoin Trust (IBIT) with $269.3 million. Fidelity’s Wise Origin Bitcoin Fund (FBTC) contributed $53.3 million and Morgan Stanley’s MSBT added $14.9 million. Bitwise (BITB) added $11.7 million and Ark Invest (ARKB) added $4.8 million. Franklin Templeton (EZBC) and VanEck (HODL) each added over $2 million. Long-term holders expanded their holdings to 4,370,000 bitcoin as of April 7.

MSBT undercuts not only IBIT but also Grayscale’s Bitcoin Mini Trust (BTC) at 0.15% and Fidelity’s FBTC at 0.25%. With all bitcoin spot ETFs holding the same underlying asset, fees are one of the few levers managers can pull to compete. That makes MSBT’s pricing a direct threat to smaller players, who now face pressure to lower costs or lose share.

Related Brief2d ago
cryptocurrency etfs

Morgan Stanley's 0.14% Bitcoin ETF forces a fee reduction for spot funds

Investors in existing crypto ETFs may switch holdings to reduce management costs. Morgan Stanley launched its spot Bitcoin ETF, MSBT, on April 8 with an expense ratio of 0.14%. The rate undercuts Grayscale's Bitcoin Mini Trust ETF at 0.15% and BlackRock's iShares Bitcoin Trust at 0.25%. To retain assets, other ETF providers must now lower their fees. Morgan Stanley is the first U.S. bank to offer a bitcoin-based ETF, which drew $34 million in investment on its first day of trading. The fund tracks the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate. The bank's 16,000 wealth advisors, managing between $6.2 trillion and $7 trillion in client assets, can now recommend the fund directly to clients. These advisors can allocate 2% to 4% of growth portfolios to the firm-endorsed vehicle. Other brokerage firms may now engage with Bitcoin ETFs to avoid losing assets under management to Morgan Stanley.

But IBIT still holds a commanding edge in liquidity — tight spreads, low trading costs, and robust options markets — all critical for institutional investors. Balchunas sees little chance BlackRock will cut fees immediately, given that advantage. James Seyffart, another Bloomberg analyst, agrees that MSBT won’t match IBIT’s liquidity anytime soon.

Related Brief2d ago
crypto etfs

Morgan Stanley's 11-basis-point fee gap creates a default choice for wealth managers

Wealth managers can now allocate new inflows to the lowest-cost spot bitcoin ETF available. Morgan Stanley Investment Management launched the Morgan Stanley Bitcoin Trust (MSBT) on April Stanley Bitcoin Trust (MSBT) on April 8, 2026, as the first U.S. bank-affiliated asset manager to offer a crypto ETP. MSBT carries an expense ratio of 0.14%, which is 11 basis points lower than the 0.25% fee charged by BlackRock's iShares Bitcoin Trust (IBIT). This 44% reduction in cost creates immediate competitive pressure on the bitcoin ETP landscape. Morgan Stanley commands a network of 16,000 financial advisors who oversee $9.3 trillion in client assets. These advisors can shift client allocations to MSBT in the आपकी भाषा में a single trade. MSBT drew $34 million in net inflows and processed more than 1.6 million shares on its first day.

Where MSBT could gain ground is through Morgan Stanley’s distribution power. The firm’s wealth management arm employs 15,000 to 16,000 financial advisers overseeing $9.3 trillion in client assets. Those advisers may increasingly favor the firm’s own ETF over external options, creating a built-in channel for growth.

Related Brief19h ago
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Institutional Bitcoin ETF Inflows Surge to $600 Million Over Two Days

U.S. spot Bitcoin ETFs now hold 721,000 BTC, valued at approximately $56.7 billion. The accumulation happened through two consecutive days of strong accumulation. U.S. spot Bitcoin ETFs pulled in $358.1 million in net inflows on April 9, led by BlackRock’s iShares Bitcoin Trust (IBIT), which captured $269.3 million. Fidelity’s Wise Origin Bitcoin Bitcoin Fund (FBTC) added $53.3 million, while Morgan Stanley’s newly launched ETF attracted $14.9 million. Other contributors included Bitwise’s BITB ($11.7 million) and ARK 21Shares’ ARKB ($4.8 million). On April 10, ETFs recorded another $240 million in net inflows, with BlackRock's IBIT leading with $137.6 million and Fidelity's FBTC adding $78 million. This surge follows a brief retreat where nearly $250 million in outflows occurred over two sessions. The rapid return of capital underscores how quickly institutions can actually rotate into crypto exposure when risk conditions improve.

The broader market environment adds pressure. After surpassing $100 billion in total assets since launch in January 2024, bitcoin ETFs saw net outflows for four straight months from November 2025 to February 2026. In March 2026, inflows returned with $1.32 billion entering the market — a rebound MSBT now aims to capture.

Related Brief1d ago
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Institutional Investors Are Not Waiting for Price Recovery — They're Buying Bitcoin ETFs at $72,100

Institutional investors are buying Bitcoin even as the price sits far below its 2026 high. Last Thursday, BlackRock’s iShares Bitcoin Trust (IBIT) pulled in $269.3 million in a single day — the largest daily inflow in five weeks. Fidelity’s Wise Origin Bitcoin Fund (FBTC) added $53.3 million. Morgan Stanley’s Bitcoin Trust (MSBT) brought in $14.9 million. Together, US spot Bitcoin ETFs reversed two days of outflows with a net inflow of $358.1 million. The buyers are not retail traders reacting to price swings. They are top-tier institutions. BlackRock’s digital assets head, Robert Mitchnick, said IBIT’s investors are overwhelmingly long-term buy-and-hold holders. At Morgan Stanley, Amy Oldenburg called MSBT the most successful ETF launch in the bank’s history. This accumulation is happening as Bitcoin trades at $72,100 — well off its $97,000 peak earlier in 2026. The inflows reveal a shift: institutional demand is decoupling from price momentum. Confidence is being expressed not through speculation, but through sustained capital allocation. The result is that US spot Bitcoin ETFs are now within $80 million of their year-to-date net inflow target. The signal is clear. Morgan Stanley is already moving beyond Bitcoin, having filed to launch a staked Ether ETF and a Solana ETF.

Whether MSBT sustains momentum beyond its first-day success will determine if it reshapes investor flows. If it does, fee cuts across the sector become more likely — even if BlackRock holds firm for now.

Related Brief3d ago
digital assets

BlackRock’s $40.67 Million Inflow Fails to Offset $124.25 Million in Bitcoin ETF Outflows

Institutional investors pulled $124.25 million from US-listed spot Bitcoin ETFs on April 8. Fidelity’s FBTC led the retreat with $79.12 million in outflows, followed by Ark’s ARKB, which shed $74.7 million and Grayscale’s GBTC, which lost $11.1 million. BlackRock’s IBIT stood alone with $40.67 million in net inflows. The total net outflow indicates more investors are exiting spot Bitcoin ETFs than entering them, as BlackRock's inflow was insufficient to offset the broader selling.

Bitcoin ETF

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