- MSBT started trading on April 8, immediately outperforming some older ETFs.
- The ETF carries a 0.14% expense ratio, the cheapest spot Bitcoin ETF currently available.
- MSBT could soon pass the Invesco Galaxy, Valkyrie, and Franklin Bitcoin ETFs.
Morgan Stanley has recorded a standout debut in the crypto ETF market, with its spot Bitcoin ETF (ticker MSBT) pulling in over $100 million in inflows within its first week, which is the best ETF launch the firm has ever had.
The ETF started trading on April 8 and has already picked up steam, showing that big investors still want Bitcoin exposure, even with the current market uncertainty.
Low fee is likely one of the reasons for this success. The ETF carries a 0.14% expense ratio, making it the cheapest spot Bitcoin ETF currently available. Additionally, Morgan Stanley’s huge wealth management network can put the fund in front of millions of clients, and the bank’s name itself lends credibility that many crypto products lack.
Morgan Stanley’s MSBT ETF even outperformed some older ETFs that took months or years to reach the $100 million mark.
Considering the current pace, MSBT could soon pass the Invesco Galaxy, Valkyrie, and Franklin Bitcoin ETFs, which have net inflows between $245 million and $375 million.
Interestingly, Morgan Stanley’s entry appears to be triggering a new wave of institutional competition. For instance, a few days ago, Goldman Sachs filed for its own Bitcoin ETF, expected to include options-based income features.
That being said, BlackRock continues to dominate the space, with its iShares Bitcoin Trust holding over $59 billion in net assets. Others, such as Fidelity and Invesco, are competing for space in a market that’s getting more crowded by the day.
No Notable Breakthrough for Bitcoin
MSBT’s strong inflows stand out even more considering what’s happening in the market right now.
Bitcoin remains notably below its highs from the start of 2026, plus the whole crypto market has been weighed down by geopolitical stress, especially the ongoing US-Iran conflict.
Bitcoin itself has been hovering around $74,500 in the last few days, which is approximately 1% increase in the last 30 days.
Despite all of this, MSBT still pulled in capital on days when other ETFs were seeing outflows.
As it stands now, the success of MSBT could have several positive implications for Bitcoin, including easier institutional access and potential long-term support for Bitcoin prices. We’ll likely find out in the near future if that will be the case.
Related: Morgan Stanley Launches MSBT as Bitcoin ETF Fee War Deepens
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