- Morgan Stanley filed an updated S-1 for its Morgan Stanley Bitcoin Trust (MSBT), setting a management fee of 0.14%.
- The proposed rate is 11 basis points lower than BlackRock’s IBIT and undercuts the Grayscale Bitcoin Mini Trust by one basis point.
- Analysts expect the fund to launch in early April 2026, leveraging the bank’s network of 16,000 financial advisors.
Investment banking giant Morgan Stanley is preparing to upend the competitive landscape of the digital asset market by proposing the lowest management fee for a spot Bitcoin ETF to date. According to an amended S-1 registration statement filed with the U.S. Securities and Exchange Commission on Friday, the Morgan Stanley Bitcoin Trust (MSBT) will carry a fee of just 14 basis points (0.14%).
The strategic pricing move places Morgan Stanley in direct competition with established leaders. At 0.14%, the fund would be significantly cheaper than the iShares Bitcoin Trust (IBIT) from BlackRock, which currently charges 0.25%. It also edges out the Grayscale Bitcoin Mini Trust, which had previously held the title of the most affordable option at 0.15%. By entering the market with a sub-15 basis point fee, the bank is signaling an aggressive push to capture assets from both internal clients and external competitors.
The timing of the filing suggests a launch is imminent, likely within the next two weeks. Market analysts anticipate the product could go live in early April. The low fee structure is particularly significant for Morgan Stanley’s wealth management arm, which oversees approximately $6.2 trillion in client assets. A lower expense ratio removes potential conflicts of interest for the firm’s 16,000 financial advisors when recommending the product to high-net-worth investors.
“Big move here. They are not messing around,” noted Bloomberg Intelligence ETF analyst James Seyffart. Fellow analyst Eric Balchunas added that the aggressive pricing ensures advisors won’t feel “conflicted” using the in-house product over third-party options, describing the bank’s network as the “ultimate gatekeepers of rich boomer money.”
Morgan Stanley’s entry into the ETF issuer space follows its previous role as a distributor of third-party Bitcoin ETFs. The bank has also been expanding its broader digital asset infrastructure, recently applying for a national trust banking charter and appointing executive Amy Oldenburg to lead its digital asset team. For the MSBT, the bank has selected Coinbase and Bank of New York Mellon to serve as custodians, ensuring a robust institutional framework for the fund’s underlying holdings.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
