Morgan Stanley has filed to launch a spot Bitcoin exchange-traded fund with a 0.14% expense ratio-the lowest proposed in the U.S. market. If approved, the Morgan Stanley Bitcoin Trust (MSBT) would undercut Grayscale’s BTC ETF by one basis point and BlackRock’s iShares Bitcoin Trust (IBIT) by 11 basis points.
Bloomberg ETF analyst James Seyffart called the move significant, predicting a launch in early April. Colleague Eric Balchunas noted the fee eliminates conflicts for Morgan Stanley’s 16,000 advisors managing $6.2 trillion in assets, making client recommendations seamless.
Regulatory approval would make Morgan Stanley the first major bank to issue a spot Bitcoin ETF, expanding crypto access for its high-net-worth clientele. The firm has tapped Coinbase and Bank of New York Mellon as custodians.
The bank has accelerated its crypto push: filing in January for spot Bitcoin and Solana ETFs, followed by a staked Ether ETF. It also applied for a national trust banking charter to custody digital assets and offer staking services. Last fall, Morgan Stanley began allowing advisors to recommend crypto funds in IRAs and 401(k)s, suggesting a 2%-4% portfolio allocation.