Morgan Stanley has launched its spot bitcoin ETF, trading under the ticker MSBT, marking the most direct challenge yet to BlackRock's dominant iShares Bitcoin Trust (IBIT).
MSBT began trading with a 0.14% expense ratio, undercutting IBIT's 0.25% fee. While the price difference is narrow, cost is a primary lever for investors in a market where all funds hold bitcoin and track its price.
IBIT has led the market in scale and liquidity since its launch, amassing roughly $55 billion in assets. This liquidity provides a significant edge for active traders.
Analysts note that while MSBT is unlikely to immediately rival IBIT's trading volume, Morgan Stanley's vast wealth management network is a game-changer. The bank can direct trillions in client assets through its army of financial advisors, making distribution a key competitive advantage.
The launch signals a market split: IBIT remains the benchmark for liquidity, while newer entrants like MSBT compete on cost and advisor-driven distribution. This shift puts BlackRock's grip on investor flows to its first sustained test.