Morgan Stanley is poised to enter the competitive landscape of Bitcoin exchange-traded funds with its newly approved Bitcoin Trust. This trust, which is set to launch on April 8, will trade on the NYSE Arca under the ticker MSBT. With the approval from the SEC, Morgan Stanley has positioned itself as a key player in the U.S. spot Bitcoin market, offering a fund that directly holds Bitcoin and tracks the CoinDesk Bitcoin Benchmark 4 PM NY Settlement Rate. Unlike some funds that may utilize leverage or derivatives, this product aims to provide straightforward exposure to Bitcoin without the added complexities.
In addition to its direct Bitcoin holdings, Morgan Stanley's trust features competitive pricing. The annual delegated sponsor fee is set at 0.14%, which is lower than the 0.25% fee of BlackRock’s similar product and most other major Bitcoin ETFs currently available. The trust will be managed with the support of BNY and Coinbase Custody Trust Company as Bitcoin custodians, ensuring a level of trust and safety for investors.
Morgan Stanley’s move is not just about this single product. It signifies a broader shift in the traditional financial sector's approach to cryptocurrencies. Having filed for spot Bitcoin and Solana ETFs earlier in the year, Morgan Stanley is reinforcing its commitment to crypto investments. Furthermore, there are plans to extend trading opportunities for Bitcoin, Ether, and Solana through E*Trade by 2026, in partnership with Zerohash. This multifaceted strategy highlights Morgan Stanley’s active role in the future of crypto finance and investment options.