Morgan Stanley filed an amended S-1 registration statement March 27 proposing a 0.14% annual fee for its spot Bitcoin (BTC) ETF, undercutting all existing U.S. competitors.
The fee is 11 basis points below BlackRock's iShares Bitcoin Trust, which charges 0.25% and currently holds $51.49 billion in net assets.
The filing gives Morgan Stanley the lowest fee structure in the $84 billion spot Bitcoin ETF market.
Bloomberg ETF analysts project an early April 2026 launch for the Morgan Stanley Bitcoin Trust (MSBT), pending SEC approval.
Distribution Network Provides Market Access
Morgan Stanley's wealth management division oversees approximately $6.2 trillion in client assets across a network of 16,000 financial advisors. The bank previously allowed advisors to offer clients access to third-party Bitcoin ETFs.
Bloomberg analyst Eric Balchunas noted that the low fee "means that none of Morgan Stanley's roughly 16,000 financial advisors would feel conflicted in recommending the product to its clients." The advisors manage assets across traditional brokerage accounts, individual retirement accounts, and 401(k) plans.
Coinbase will serve as prime broker and custodian for Bitcoin holdings, while BNY Mellon will handle cash and administrative functions. The New York Stock Exchange issued an official listing for MSBT on March 24, describing the launch as "imminent."
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Part of Broader Cryptocurrency Product Strategy
Morgan Stanley filed its initial spot Bitcoin ETF application on January 6, 2026, alongside a Solana ETF filing. The bank subsequently filed for a staked Ether ETF later that month.
On February 18, Morgan Stanley applied for a national trust banking charter to provide cryptocurrency custody, trading, and staking services.
The bank appointed Amy Oldenburg, a longtime executive, to lead its digital asset strategy in January.
U.S. spot Bitcoin ETFs have recorded $55.93 billion in cumulative net inflows since launching in January 2024. The funds collectively hold approximately 7% of total global Bitcoin supply.
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