Banking giant Morgan Stanley has launched its own spot Bitcoin ETF, trading under the ticker MSBT. The fund debuted with a management fee of 0.14%, making it the lowest-cost spot Bitcoin ETF on the market. On its first day of trading, it attracted roughly $34 million in volume and purchased 430 BTC. This launch coincides with a period of mixed flows for the broader spot Bitcoin ETF category.
The long-awaited spot Bitcoin ETF from Morgan Stanley began trading yesterday on the NYSE Arca. On its debut, the fund, called MSBT, attracted approximately $34 million in trading volume with over 1.6 million shares changing hands.
ETF analyst Eric Balchunas described the launch as “arguably the biggest Bitcoin ETF launch since they began.” He set a first-year assets under management target of $5 billion for the new product.
The fund launched with a management fee of 0.14%, which undercuts major competitors. This pricing is lower than the 0.25% fee for BlackRock’s IBIT and the 0.15% charged by Grayscale’s Bitcoin Mini Trust.
Morgan Stanley’s global head of ETFs, Allyson Wallace, stated the low fee was a deliberate strategy to show the bank’s commitment. “Demand has been high, especially from high-net-worth investors,” she told Bloomberg.
On-chain data from tracking account HODL15Capital reported that MSBT purchased 430 BTC on its first day. This activity supported the sentiment of strong initial demand for the new fund.
The broader spot Bitcoin ETF market has seen uneven flows recently. Data from SoSoValue showed total net outflows of about $124 million across all funds yesterday.
Meanwhile, Bitcoin’s price is trading just above $71,000. This represents a drop from a recent three-week peak near $73,000 reached after reports about Iran potentially requiring Bitcoin tolls for ship transit.
Morgan Stanley’s entry follows its January 2026 filings for both Bitcoin and Solana-linked funds. Reports indicated a shift among large institutions from distributing third-party products to issuing their own.
The MSBT fund combines traditional custody through BNY Mellon with crypto-native infrastructure from Coinbase. It offers exposure to Bitcoin’s price without requiring direct ownership of the asset itself.
