Morgan Stanley’s (MS) spot bitcoin exchange-traded fund (ETF), trading under the ticker MSBT, has drawn more than $100 million in inflows in its first week on the market, signaling strong early demand for the bank’s latest push into digital assets.
The fund, which began trading on April 8, tracks the CoinDesk Bitcoin Benchmark 4 PM New York Settlement Rate and charges an expense ratio of 0.14%. This makes it the cheapest product in the category, giving it a price advantage as competition among issuers intensifies.
Yet cost is only part of the story. MSBT enters the market with a built-in distribution advantage through Morgan Stanley’s vast wealth management business, which oversees trillions of dollars in client assets. The firm’s network of financial advisors provides a direct channel to investors who may prefer to gain exposure to bitcoin through managed portfolios rather than trading on crypto-native platforms.
This range could prove critical as the spot bitcoin ETF market matures. While MSBT’s early gains are notable, the fund remains far smaller than BlackRock’s iShares Bitcoin Trust (IBIT), which has amassed more than $53 billion in assets since launching in January 2024 and dominates the category.
Morgan Stanley’s head of digital assets, Amy Oldenburg, said MSBT has already become the firm’s most successful ETF launch in an interview with Bloomberg.
Some analysts expect Morgan Stanley’s product to draw assets from existing funds like IBIT, particularly among clients already within its advisory ecosystem. At the same time, the company’s entry can help expand the overall market by bringing in new investors.
Goldman filing signals broader Wall Street shift
Morgan Stanley’s move is already prompting responses from peers. Earlier this week, Goldman Sachs filed for a Bitcoin Premium Income ETF, marking one of its first direct forays into the crypto investment space. The proposed fund will use options strategies to generate income, reflecting a growing trend to wrap bitcoin in products that produce steady cash flow rather than relying solely on price gains.
BlackRock is also preparing a similar income-focused ETF, underscoring how the competition is moving beyond simple spot exposure to more structured offerings.
“The significance of Goldman’s filing is that yet another blue-blooded, legacy financial institution recognizes that it can no longer ignore bitcoin,” said Nate Geraci, president of NovaDius Wealth Management. “With Morgan Stanley’s recent foray into spot bitcoin ETFs, it’s becoming clear that other old Wall Street firms are realizing they can’t just take pats. I wouldn’t be surprised to see firms like JPMorgan soon follow suit.”
As inflows build and the slate of new products emerges, Wall Street’s role in shaping how investors access bitcoin appears to be growing rapidly.
