Markets

Share this article

X (Twitter)LinkedInFacebookEmail

Morgan Stanley enters bitcoin ETF race with market-leading low fee

The bank priced its proposed spot bitcoin fund at 14 basis points, making it the lowest fund on the market, if approved.

By Helene Braun|Edited by Nikhilesh De

Updated Mar 30, 2026, 7:42 p.m. Published Mar 27, 2026, 8:21 p.m.

Make preferred on

What to know:

Morgan Stanley plans to launch a spot bitcoin ETF priced at 14 basis points, undercutting current low-cost rivals and potentially igniting a new fee war.
Because spot bitcoin ETFs offer nearly identical exposure, Morgan Stanley’s lower fee could prompt advisors to shift client assets from higher-cost funds.
If approved, the MSBT fund would be the first spot bitcoin ETF issued directly by a major U.S. bank, leveraging Morgan Stanley’s vast wealth management network to compete on cost and distribution.

Morgan Stanley plans to price its proposed spot bitcoin BTC$74,085.69 exchange-traded fund (ETF) at 14 basis points, a level just below current low-cost options for similar products, according to an amended filing with the U.S. Securities and Exchange Commission (SEC). The move could set off a new round of fee competition among existing funds.

The latest S-1 filing, filed Friday, shows the bank undercutting rivals that charge closer to 15 to 25 basis points. The lowest fee on the market today is Grayscale’s Bitcoin Mini Trust ETF BTC$74,085.69, which carries a 0.15% expense ratio. Larger funds, including BlackRock’s iShares Bitcoin Trust (IBIT), priced their products at 25 basis points.

On paper, the gap looks narrow. In practice, it may be enough to shift money.

Spot bitcoin ETFs offer near-identical exposure. Each fund holds bitcoin and aims to track its price. That leaves cost as one of the few variables investors and advisors can act on. A financial advisor can move a client from one ETF to another with a single trade, keeping the same exposure while lowering annual fees.

That dynamic has shaped the ETF market before, and lower-cost products tend to attract inflows, while higher-fee funds can see assets drift out over time. Grayscale’s flagship product, its Bitcoin Trust (GBTC), holds about $10 billion in assets, down from $29 billion at launch in January 2024.

Morgan Stanley’s scale adds another layer. Its wealth management arm oversees trillions in client assets and has one of the largest adviser networks in the industry. Even small allocation changes across that base could move billions of dollars between funds.

The pricing decision also points to strategy. By entering with a lower fee, Morgan Stanley may be aiming to quickly gain share in a market where products are hard to differentiate. Cost and access, not structure, often decide which funds grow.

The filing follows confirmation from the New York Stock Exchange that it has issued a listing notice for MSBT, signaling the product could begin trading quickly if approved.

If regulators sign off, the fund would be the first spot bitcoin ETF issued directly by a major U.S. bank, setting up a new phase of competition where fees and distribution drive the outcome.

More For You

Bitcoin’s $76,000 breakout fails but a rare signal is hinting at major market bottom

By Krisztian Sandor|Edited by Stephen Alpher

3 hours ago

Bitcoin (BTC) price on April 14, Tuesday (CoinDesk)

Derivatives funding rates have now remained negative for 46 days, a streak last seen following the FTX crash which marked the bottom of 2022’s crypto winter.

What to know:

Bitcoin briefly topped the key $76,000 level before reversing to $74,000, extending a two-month struggle to sustain a true breakout.
Funding rates on Binance’s bitcoin perpetuals have remained negative for 46 days, even as open interest rises, indicating persistent bearish positioning.
Such extended risk-off regimes, marked by crowded short trades,…

Read full story

Latest Crypto News

Bitcoin’s $76,000 breakout fails but a rare signal is hinting at major market bottom

3 hours ago

The next Fed chair has crypto exposure in his portfolio. Here are the details

4 hours ago

Rakuten headquarters. (Akonnchiroll/Wikimedia Commons)

Rakuten to allow XRP to be used as payment method by its 44 million customers

4 hours ago

Silhouette image of a hooded figure behind three screens. (geralt/Pixabay)

Popular DeFi platform warns users to stay away from its site after security breach

5 hours ago

Ethereum Foundation unveils $1M audit subsidy program to boost crypto security and cut costs for builders

5 hours ago

Goldman Sachs files for bitcoin income ETF in crypto push

8 hours ago

JPMorgan CFO warns stablecoins risk becoming ‘regulatory arbitrage’ play

9 hours ago

Cuy Sheffield, the head of Visa's Crypto team (Visa)

Visa and Zodia Custody join Stripe’s new blockchain for machine payments

11 hours ago

Bitcoin climbs to highest level since Feb. 5 crash that sent price plunging to $60,000

8 hours ago

A padlock secures a gate hasp. (Shutterstock)

XRP Ledger adds zero-knowledge proofs targeting institutional privacy gap

10 hours ago

Tether introduces crypto wallet to bring stablecoin and bitcoin payments directly to users

11 hours ago

Price Performance Since Halving (Glassnode)

Bitcoin passes halfway point in halving cycle as price gains trail prior cycles

11 hours ago

!–>!–>!–>!–>
Read More

Whales Accumulate $50 Million in $LINK as Price Climbs Higher; $GFOX Presale 98% Sold Out

Bitcoin price has never ended a year higher after a start this bad — is $88k the 2026 ceiling now?

Bitcoin Dips Below $66K: Charts Signal Incoming Market Bloodbath and Buy Opportunity