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The American financial institution Morgan Stanley has introduced its own spot exchange-traded fund (ETF) for Bitcoin, named Morgan Stanley Bitcoin Trust. The fund is listed on the NYSE Arca under the ticker MSBT, as reported by Bloomberg.
The bank announced that the fund’s annual fee is set at 0.14%. In comparison, the fee for the Grayscale fund is 0.15%, while the market leader IBIT from BlackRock charges 0.25%.
The custodian for the crypto assets will be the American exchange Coinbase, which will act as the broker, while BNY Mellon will manage the cash storage and administrative responsibilities.
Ally Wallace, head of the ETF department at Morgan Stanley Investment Management, stated that the reduced fee is a deliberate strategy aimed at strengthening the bank’s position in the market.
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“The demand for digital gold from affluent clients remains strong. The bank’s management is confident that cryptocurrencies have established themselves as a legitimate asset class that is here to stay,” she remarked.
Senior analyst at Bloomberg Intelligence, Eric Balchunas, noted that the bank’s aggressive pricing strategy regarding fees indicates significant demand from financial advisors.
He mentioned that the Morgan Stanley Wealth Management division, which comprises approximately 16,000 advisors, had previously recommended that clients allocate up to 4% of their portfolios to Bitcoin, potentially attracting new investors.
Morgan Stanley launched the fund following the approval from the Office of the Comptroller of the Currency (OCC) for national banks to account for crypto assets on their balance sheets for blockchain-related operations.
By the end of the year, Morgan Stanley also plans to introduce ETFs linked to Ethereum and Solana, as specified by Bloomberg.
Previously, analysts at SoSoValue reported that on Monday, April 6, the net inflow of capital into spot exchange-traded funds tied to Bitcoin’s price reached $471 million, marking the highest daily figure since February.
