Morgan Stanley has filed with the SEC to launch a spot Bitcoin ETF called MSBT with an annual fee of just 0.14%, positioning it as a lower-cost competitor to existing products from BlackRock and Grayscale. The fund, which would be the first of its kind directly issued by a major U.S. bank, will use Coinbase as custodian and BNY Mellon for administration, tracking Bitcoin’s price passively.
On March 28, 2026, a comment noted that BlackRock‘s iShares Bitcoin Trust (IBIT) charges 0.25% annually, while Grayscale‘s Bitcoin Mini Trust ETF charges 0.15%. Investment experts stated the lower fees could attract both large advisers and individual investors, as reduced costs often accumulate greater long-term returns.
The New York Stock Exchange has approved the listing of MSBT. This has led to investor speculation that Morgan Stanley could become the first major bank to launch a spot Bitcoin ETF directly.
The fund’s structure mirrors existing spot Bitcoin ETFs. Coinbase will serve as custodian for the Bitcoin holdings, while BNY Mellon will handle administrative and transfer agency services.
Amy Oldenburg, head of digital asset strategy at Morgan Stanley, explained the firm’s approach. “It’s not just FOMO. We have been working on modernizing financial infrastructure for years, and this ETF is part of that journey,” she stated.
The bank has built a significant position in Bitcoin ETFs, with nearly $667 million in its flagship fund, totaling $729 million. Morgan Stanley also plans to expand its technology to include digital forms of its equities later this year.
Analysts note that integrating cryptocurrency with traditional banking requires rethinking fundamental infrastructure, as the systems operate differently. With its low fee structure and institutional backing, MSBT is positioned to be a major competitor in the Bitcoin ETF market.
