Published

Crypto28 March, 20261 min read

Morgan Stanley's Low-Cost Bitcoin ETF Debuts with $34 Million Inflows

MSBT launched on NYSE Arca with a 0.14% fee. First-day inflows around $34 million and about 1.6 million shares traded.

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Morgan Stanley's Low-Cost Bitcoin ETF Debuts with $34 Million Inflows
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ETF Launch and Market Entry

Morgan Stanley launched its spot Bitcoin ETF with a 0.14% expense ratio, the cheapest product in the category. The fund debuted with more than 1.6 million shares traded and roughly $34 million in inflows.

Eric Balchunas noted Morgan Stanley's captive audience of approximately 16,000 financial advisors. The launch marks the first Bitcoin ETF from a major US investment bank.

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Image: @coindesk
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Competitive Dynamics

MSBT enters a crowded market dominated by BlackRock's IBIT which manages over $53 billion. Analysts expect MSBT to attract flows primarily from existing Bitcoin ETFs.

Morgan Stanley previously recommended clients allocate 2% to 4% of their portfolios to crypto. The ETF uses Coinbase for custody and BNY Mellon for administration.

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Investor and Market Response

Morgan Stanley's stock rose over 4% on the day of the launch. Bitcoin prices surged 5% above $70,000 amid broader risk-on sentiment.

The debut was placed in the top 1% of all ETF launches by Bloomberg analyst. Some analysts cautioned the true test is sustaining momentum beyond opening days.

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