Morgan Stanley is poised to become the first major U.S. bank to launch a bitcoin exchange-traded fund, according to filings and market notices marking its debut on April 8.
The $1.9 trillion Wall Street firm’s entry will arrive more than two years after the US Securities and Exchange Commission (SEC) approved the first bitcoin ETF in January 2024.
Payment of Morgan Stanley’s Bitcoin ETF
new fund, expected Trading under the symbol “MSBT” on the New York Stock Exchange (NYSE), it carries an annual fee of 14 basis points. That price undercuts the current market leader, BlackRock’s IBIT, by 11 basis points – a significant discount that Bloomberg expert Eric Balchunas described as “almost a shock.”
According to Balchunas, Morgan Stanley’s lower fees make the product more palatable to the firm’s advisers and increase its chances of attracting outside assets.
The expert noted that compared to many mainstream stock index ETFs, which typically charge between 3 and 10 basis points, the bank’s fees bring its exposure to bitcoin closer to a commodity-like pricing structure.
Roy Cashey, CEO of FalconEdge, Suggested The move aims to “blow the competition out of the water,” adding that Morgan Stanley’s lower fees further legitimize bitcoin ETFs and demonstrate the bank’s desire to gain market share.
The launch of the ETF is expected to stimulate competition on fees
Experts like Balchunas expect the NYSE Arca listing notice to make the fund effective April 8, at which point it could begin trading. The expert previously indicated that the forecast for the first year of assets under management will emerge after the listing and further analysis.
However, if Morgan Stanley’s MSBT attracts significant inflows, fee competition among issuers is expected to increase, forcing other issuers to adjust their pricing, distribution or product features.
The timing of Morgan Stanley’s campaign also aligns with the changing regulatory and legislative landscape. Several major financial institutions have accelerated plans for direct exposure to Bitcoin and infrastructure as a result of the Trump administration’s renewed stance toward clearer frameworks for digital assets.
As such, major financial companies, including Charles Schwab, have announced plans to expand their Bitcoin capabilities. This indicates growing interest among wealth managers, broker-dealers and hedge funds, as observed on social media mail Written by Phuong Lu, Chief Strategy Officer.
Featured image from OpenArt, chart from TradingView.com
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