Morgan Stanley Investment Management has launched the Morgan Stanley Bitcoin Trust (MSBT), a new exchange-traded product designed to track the performance of Bitcoin, marking its entry into the digital asset space.

Lowest Fee Among Competitors

The product represents the first crypto-focused ETP from a U.S. bank-affiliated asset manager — Morgan Stanley (NYSE:MS) — highlighting rising institutional demand for regulated Bitcoin exposure.

MSBT uses the CoinDesk Bitcoin Benchmark as its pricing reference and offers a 0.14% sponsor fee, undercutting major competitors such as Grayscale and BlackRock (NASDAQ:BLK).

The fund has partnered with Coinbase (NASDAQ:COIN) for custody and BNY for administration and recordkeeping, aiming to provide a transparent and institutional-grade investment vehicle.

Overall, MSBT is positioned as a highly competitive entrant in the Bitcoin ETF market, with expectations for strong asset growth in its first year.

Potentially One Of The Largest ETF Launches

Bloomberg Senior ETF analyst, Eric Balchunas said the launch could rank among the largest in the space, driven by Morgan Stanley's extensive distribution network and credibility in traditional finance.

The analyst estimates the fund could reach $5 billion in assets under management within its first year, with day-one trading volume potentially hitting $30 million.

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