Morgan Stanley’s Bitcoin ETF Debut Reveals a Shift Toward Low-Fee Institutional Distribution
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Hazel Weston
HSA eligibility IRS ruling · Apr 9, 2026
Source: DojiDoji Data Terminal
Investors in the Morgan Stanley Bitcoin Trust (MSBT) now have access to one of the lowest-cost spot Bitcoin ETFs in the US, with a management fee of 0.14%. The fund launched on April 8, 2026, on the NYSE Arca, recording between $30.6 million and $36 million in first-day inflows and $34 million in trading volume. To support this structure, the trust acquired between 430 and 444.4 BTC.
This debut marks the first time a major US investment bank has offered a spot Bitcoin ETF. The fund utilizes a hybrid custody model, employing Bank of New York Mellon and Coinbase Custody for digital asset storage. On the same day as the launch, Coinbase received preliminary approval from the Office of the Comptroller of the Currency to establish a national trust bank.
While the total daily outflows from US spot Bitcoin ETFs reached $124.5 million on the launch date, MSBT and BlackRock’s iShares Bitcoin Trust (IBIT), which saw $40 million in inflows, were the only funds receiving net positive flows. Other major funds, such as Fidelity's FBTC ($79 million outflow) and ARK 21Shares' ARKB ($75 million outflow), experienced significant selling.
Compared to the 2024 launch wave, where BlackRock's IBIT saw $112 million in first-day inflows and billions in trading volume, MSBT's debut was modest. However, analyst Eric Balchunas of Bloomberg noted that the fund is positioned among the top 1% of ETF launches over the past year.
Morgan Stanley's entry into the market is built on its distribution network of 16,000 advisers and $6.2 trillion to $7 trillion in assets under management. Based on this network, Balchunas estimates MSBT could reach $5 billion in assets under management within its first year.