Morgan Stanley’s Bitcoin ETF Launches on NYSE

Morgan Stanley Investment Management has finally launched its spot Bitcoin exchange-traded fund (ETF).

The product, called Morgan Stanley Bitcoin Trust (MSBT), will trade on NYSE Arca and aims to provide investors with regulated exposure to Bitcoin through a traditional investment vehicle. Notably, the fund represents the first cryptocurrency ETP offered by a U.S. bank-affiliated asset manager.

Key Points

• Morgan Stanley Investment Management has launched its spot Bitcoin exchange-traded fund, marking a major step into the digital asset investment space. 
• The fund will trade on NYSE Arca and track Bitcoin’s price performance using the CoinDesk Bitcoin Benchmark 4 PM NY Settlement Rate. 
• Morgan Stanley set the sponsor fee at 0.14%, making it one of the lowest-cost Bitcoin ETP offerings in the market. 
• BNY and Coinbase will provide institutional-grade digital asset custody services. 

MSBT Bitcoin ETF Goes Live on NYSE 

According to the announcement, MSBT seeks to replicate Bitcoin’s price movements using the CoinDesk Bitcoin Benchmark 4 PM NY Settlement Rate as its pricing reference. The benchmark aggregates executed trade data from major Bitcoin spot exchanges to produce a standardized daily settlement rate.

The fund also features a competitive cost structure. Specifically, it carries a 0.14% sponsor fee, which Morgan Stanley says is currently the lowest among comparable Bitcoin ETP offerings, including Grayscale Investments’ product, which charges around 0.15%.

To ensure institutional-grade infrastructure, Morgan Stanley selected BNY and Coinbase to provide digital asset custody services. In addition, BNY will serve as the administrator and transfer agent, handling accounting, record-keeping, and cash management functions for the fund. 

Morgan Stanley Investment Arm Expands Beyond Traditional Asset Classes

The launch highlights Morgan Stanley’s growing commitment to digital asset innovation and its response to rising client demand for cryptocurrency exposure. Moreover, the ETP structure allows investors to access Bitcoin through a transparent, regulated framework that integrates seamlessly with traditional brokerage and portfolio systems.

Moreover, the offering expands Morgan Stanley Investment Management’s ETF platform, launched in 2023 and now managing more than $12 billion in assets across 19 products. By introducing a Bitcoin ETP, the firm is extending its investment lineup beyond traditional finance (TradFi) assets into the crypto market. 

First Major US Bank to Venture Into Bitcoin ETF Market 

Notably, Morgan Stanley’s entry into the Bitcoin ETF market has attracted significant investor attention. Although major asset managers such as BlackRock and Fidelity Investments already offer Bitcoin ETFs, Morgan Stanley is the first major U.S. bank-affiliated asset manager to launch one.

According to Eric Balchunas of Bloomberg, the development marks a dramatic shift for the financial industry. Last month, he noted that such a move would have been unthinkable just a few years ago. He emphasized that Morgan Stanley is no ordinary bank, pointing to its network of roughly 16,000 financial advisors.

Meanwhile, the launch arrives shortly after Bitcoin ETF products recorded their first weekly outflows. Approximately $159 million exited these funds, with offerings from Fidelity Investments and Grayscale Investments seeing withdrawals of $47.8 million and $41.9 million, respectively.