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

Morgan Stanley launched its spot Bitcoin ETF with a 0.14% expense ratio, the cheapest product in the category.

“Morgan Stanley’s bitcoin ETF draws $34 million on day one Morgan Stanley’s low-fee bitcoin ETF debuted with strong early trading, signaling demand as competition shifts to cost and distribution”

@coindesk

The fund debuted with more than 1.6 million shares traded and roughly $34 million in inflows.

@coindesk

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.

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.

Bitbo

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.

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.