- The new spot Bitcoin ETF of Morgan Stanley immediately gained $30.6 million in net inflows upon launch on Wednesday, significantly outperforming the first-day performance of many of its competitors.
- The product leverages Morgan Stanley’s huge presence in the banking industry.
- MSBT also offers the lowest expense ratio at 0.14%.
Morgan Stanley Investment Management’s new spot Bitcoin (BTC) exchange-traded fund (ETF) went off to a great start at the New York Stock Exchange (NYSE) Arca. It immediately accumulated $30.6 million in net inflows upon launch on Wednesday, with a market price of $20.47.
Morgan Stanley Bitcoin Trust ETP (MSBT) tracks Bitcoin’s performance, as measured by the CoinDesk Bitcoin Benchmark 4 PM New York Settlement Rate. The ETF provides investors with exposure to the prime crypto asset without the complexities associated with direct BTC ownership, particularly the management and safeguarding of a digital wallet.
The Bank of New York Mellon (BNY) and Coinbase Custody Trust Company, LLC serve as custodians of the product’s backing assets, while Foreside Fund Services, LLC functions as its marketing agent.
Advantages of Morgan Stanley’s Bitcoin ETF
MSBT marks the first time a major US bank has issued a spot Bitcoin ETF. The product draws on Morgan Stanley’s nearly 100 years of experience as a premier global financial services firm, dating back to its founding in 1935.
To date, the institution has a total of $1.9 trillion in assets under management (AUM). It operates across 25 countries, with 56 offices and 4.9K employees worldwide.
Morgan Stanley’s Bitcoin ETF offers the lowest expense ratio compared to its competitors. Its 0.14% fee has significantly undercut BlackRock’s 0.25% and Grayscale’s 0.15% fees. The fee structure offers a lower drag on returns, making MSBT a highly attractive option for long-term holders.
The Bitcoin ETF Market at a Glance
BlackRock remains the largest issuer of Bitcoin ETFs. The investment giant’s iShares Bitcoin Trust ETF (IBIT) currently holds around $63.32 billion in total net inflows. It’s the best-performing in the market segment, with an average of $112.9 million in net inflows since launch in January 2024 and recording the highest net inflow among its peers at $1.12 billion in November of the same year.
Meanwhile, the converted Grayscale Bitcoin Trust ETF (GBTC) has the highest net outflows by far, totaling $26.076 billion. MSBT directly trails the WisdomTree Bitcoin Fund’s (BTCW) $86 million all-time net inflows.
Morgan Stanley has impressively outperformed the first-day net inflows of many of its direct competitors, including Invesco, CoinShares, VanEck, WisdomTree, and Graycale.
