"Lowest-Fee" Morgan Stanley Bitcoin ETF Sees $34 Million Net Inflow on First Day [Crypto Briefing]

[Financial News] Morgan Stanley entered the virtual asset ecosystem on the 8th (local time) by launching a spot Bitcoin exchange-traded fund (ETF). The Morgan Stanley Bitcoin Trust (MSBT) recorded a net inflow of $34 million (about 50.3 billion won) on its first trading day, with trading volume exceeding 1.6 million shares. Market observers say this confirms strong demand from institutional investors.
According to foreign media and industry sources on the 9th, Morgan Stanley Investment Management became the first U.S. bank-affiliated asset management company to introduce a spot Bitcoin ETF.
MSBT, listed on the New York Stock Exchange Arca (NYSE Arca), is challenging the Bitcoin ETF market dominated by BlackRock and others by offering an industry-low fee of 0.14%. This is 0.11 percentage points lower than iShares Bitcoin Trust (IBIT) from BlackRock, which leads the spot Bitcoin ETF market with a 0.25% fee. It is also cheaper than Franklin Bitcoin ETF (ticker: EZBC) from Franklin Templeton, which previously had one of the lowest fee levels at 0.19%.
Benjamin Huneke, head of Morgan Stanley Investment Management, stated in a press release that MSBT is a digital asset product that connects Morgan Stanley’s expertise and market experience with investors.
To ensure stable management of MSBT, Morgan Stanley diversified its custody framework. It jointly selected Coinbase and The Bank of New York Mellon (BNY Mellon) as custodians. This is seen as a strategy aimed at institutional investors who are concerned about the volatility and security risks of virtual assets.
The launch of this ETF by Morgan Stanley is viewed not just as an expansion of its investment product lineup, but as a full-fledged entry into the digital asset ecosystem. The firm has reportedly applied for a trust bank license so it can also offer virtual asset custody, trading, and staking services.
A source in the securities industry commented, "The fact that Morgan Stanley has issued an ETF means Bitcoin has been incorporated into the mainstream asset universe," adding, "Given Morgan Stanley’s own advisory network, there is a very high likelihood that funds from high-net-worth clients will flow into MSBT through its wealth management channels."
An official in the virtual asset industry also noted, "Traditional financial institutions have begun to see virtual assets and the real-world asset tokenization market as new sources of revenue," and added, "For domestic securities companies and asset management companies as well, it is time to move beyond simply brokering overseas Bitcoin ETFs and to establish medium- to long-term strategies that include a wide range of crypto-based product structures."
However, some remain skeptical about latecomers to the market. KB Securities assessed that although Morgan Stanley’s Bitcoin ETF posted high first-day trading volume on the back of the lowest fee and its advisory network, its ability to sustain growth remains uncertain in a market structure centered on BlackRock.

elikim@fnnews.com Kim Mi-hee Reporter