Morgan Stanley’s (MS) spot Bitcoin exchange-traded fund (ticker MSBT) attracted more than $100 million in inflows in its first week on the market, signaling strong early demand for the bank’s latest foray into digital assets.
The fund, which began trading on April 8, tracks the CoinDesk Bitcoin benchmark New York 4 p.m. settlement rate and charges an expense ratio of 0.14%. This makes it the cheapest product in the category, giving it a pricing advantage as competition among issuers increases.
Cost is only part of the story, though. MSBT comes to market with inherent distribution advantages through Morgan Stanley’s massive wealth management business, which manages trillions of dollars in client assets. The company’s network of financial advisors provides direct access to investors who may be more willing to invest in Bitcoin By managing a portfolio rather than trading on a cryptocurrency native platform.
As the spot Bitcoin ETF market matures, this influence could be crucial. While MSBT’s early inflows have been notable, the fund is still far smaller than BlackRock’s iShares Bitcoin Trust (IBIT), which has amassed more than $53 billion in assets since its launch in January 2024 and dominates the category.
Amy Oldenburg, head of digital assets at Morgan Stanley, said in an interview with Bloomberg that MSBT has become the most successful ETF launched by the company.
Some analysts expect Morgan Stanley’s product to draw assets from existing funds such as IBIT, particularly clients already in its advisory ecosystem. At the same time, the company’s entry may help expand the overall market by bringing in new investors.
Goldman Sachs filing heralds broader shift on Wall Street
Morgan Stanley’s move has already prompted reactions from peers. Earlier this week, Goldman Sachs filed for a Bitcoin Premium Income ETF, one of its first direct forays into cryptocurrency investing. The proposed fund will use options strategies to generate income, reflecting a growing trend to package Bitcoin as a product that generates stable cash flow rather than relying solely on price appreciation.
BlackRock is also preparing to launch a similar income-focused ETF, underscoring the shift in competition away from simple spot investments and towards more structured products.
“The significance of Goldman Sachs’ filing is that yet another aristocratic, old-school financial institution is acknowledging that it can no longer ignore Bitcoin,” said Nate Geraci, president of NovaDius Wealth Management. “With Morgan Stanley’s recent entry into a spot Bitcoin ETF, it’s clear that other traditional Wall Street firms are realizing they can’t stand by and watch. I wouldn’t be surprised to see the likes of JPMorgan Chase follow suit soon.”
Wall Street’s role in shaping how investors access Bitcoin appears to be expanding rapidly as money flows in and new products hit the market.
