Morgan Stanley’s (MS) spot Bitcoin exchange-traded fund (ETF), trading under the 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 push into digital assets.
The fund, which began trading on April 8, tracks the CoinDesk Bitcoin Benchmark settlement rate as of 4 p.m. in New York and charges an expense ratio of 0.14%. This makes it the cheapest product in the category, giving it a pricing advantage as competition between issuers intensifies.
Yet cost is only part of the problem. MSBT enters the market with a built-in distribution advantage through Morgan Stanley’s extensive wealth management business, which manages billions of dollars of client assets. The company’s network of financial advisors provides a direct channel for investors who prefer to gain exposure to bitcoin. through managed wallets rather than trading on crypto-native platforms.
This reach could prove critical as the Bitcoin ETF spot market matures. While MSBT’s early inflows are notable, the fund remains much smaller than BlackRock’s iShares Bitcoin Trust (IBIT), which has amassed more than $53 billion in assets since its January 2024 launch and dominates the category.
Amy Oldenburg, head of digital assets at Morgan Stanley, said MSBT has already become the firm’s most successful ETF launch in an interview with Bloomberg.
Some analysts expect Morgan Stanley’s product to pick up assets from existing funds like IBIT, particularly among clients already part of its advisory ecosystem. At the same time, the company’s entry could help expand the overall market by attracting new investors.
Goldman filing signals broader shift on Wall Street
Morgan Stanley’s decision is already sparking reactions from its peers. Earlier this week, Goldman Sachs filed for a Premium Income Bitcoin ETF, marking one of its first direct entries into the crypto investment space. The proposed fund would use options strategies to generate income, reflecting a growing trend to integrate bitcoin into products that generate a stable cash flow rather than relying solely on price gains.
BlackRock is also preparing a similar income-focused ETF, highlighting how competition is moving beyond simple spot exposure to more structured offerings.
“The significance of Goldman’s filing is that another financial institution from the blue-blooded old guard recognizes that it can no longer ignore bitcoin,” said Nate Geraci, president of NovaDius Wealth Management. “With Morgan Stanley’s recent entry into spot bitcoin ETFs, it’s becoming clear that other traditional Wall Street firms are realizing they can’t stand idly by. I wouldn’t be surprised to see firms like JPMorgan soon follow suit.”
As cash flow increases and new products emerge, Wall Street’s role in how investors access bitcoin appears to be expanding rapidly.
