Morgan Stanley Preps 14 bps Spot Bitcoin ETF, Taking Aim at BlackRock's IBIT

Morgan Stanley is moving to enter the U.S. spot Bitcoin ETF race with a sharply discounted fee, a step that underscores continued institutional appetite for crypto-linked funds even as the category sees fresh outflows. In an amended S-1 filing, the bank proposed a spot Bitcoin ETF under the ticker MSBT with a 14 basis point management fee. That would price below Grayscale's 0.15% and well under BlackRock's iShares Bitcoin Trust (IBIT) fee of 25 basis points. If approved, MSBT would be the first spot Bitcoin ETF issued directly by a major U.S. bank, a notable milestone for institutional crypto adoption. Market observers say the low-fee structure, paired with a planned NYSE Arca listing, could escalate pricing pressure across the segment and help draw adviser-led allocations through Morgan Stanley's wealth-management platform. The bank oversees about $6 trillion in assets and has roughly 16,000 advisors. The filing comes as U.S. spot Bitcoin ETFs have faced renewed redemptions. On Friday, March 27, the group posted net outflows of $225 million. IBIT accounted for the bulk of the move: during the latest session it saw net outflows of 3,061 Bitcoin, valued at about $201.67 million, despite generating roughly $2.5 billion in trading volume. Market participants noted that outflows can reflect short-term positioning changes, while high turnover points to ongoing institutional engagement. Bloomberg ETF strategist James Seyffart said he expects MSBT to launch in April. He added that Morgan Stanley has also filed for spot Ethereum and Solana ETFs, raising the possibility of similarly low-cost offerings. Seyffart also pointed to VanEck's VanEck Bitcoin Trust (HODL) as the current lowest-cost option, citing a temporary 0.00% fee waiver that sets the floor for price competition.