Crypto Giggle
MSBT exceeded expectations, and saw over 1.6 million shares traded. The fund offers a 0.14% fee, undercutting competitors like BlackRock and Grayscale. Its debut coincided with a broader Bitcoin rebound and renewed ETF interest.
MSBT Sees Strong Start
Morgan Stanley’s entry into the spot Bitcoin ETF market began with a solid debut, as its Morgan Stanley Bitcoin Trust (MSBT) recorded approximately $34 million in trading volume on its first day. The fund saw over 1.6 million shares traded and closed at $20.47, surpassing expectations from analysts who projected slightly lower initial activity.
A key differentiator for MSBT is its aggressive pricing strategy. With a sponsor fee of just 0.14%, it undercuts major competitors like BlackRock’s iShares Bitcoin Trust, which charges 0.25%, and even slightly edges out Grayscale’s Bitcoin Mini Trust ETF at 0.15%.
This low-cost structure positions Morgan Stanley to compete more effectively for inflows, particularly among more cost-sensitive investors. The firm also brings a distribution advantage through its network of roughly 16,000 financial advisors overseeing $9.3 trillion in assets, which could help drive adoption over time.
The launch coincided with a broader resurgence in Bitcoin and ETF market activity. Bitcoin itself experienced a sharp rebound, and raised more than 7.5% from recent lows to briefly approach $73,000 before stabilizing close to $71,000.
BTC’s Where to Buy action over the past 24 hours (Source: CoinCodex)
This upward move followed geopolitical developments, including a ceasefire announcement between the United States and Iran, alongside reports that Iran was accepting cryptocurrency payments for oil transit fees.
At the same time, US-listed spot Bitcoin ETFs recorded around $471 million in net inflows earlier in the week, which was the strongest daily total in about six weeks. Funds managed by major players like BlackRock and Fidelity led the inflows.
Bitcoin ETF flows (Source: Farside Investors)
However, despite this recent recovery, the sector is still rebounding from sustained outflows, with nearly $5 billion withdrawn since November. These losses have only been partially offset by inflows seen in March and early April.
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