What to know:
- Morgan Stanley launches MSBT Bitcoin ETF with ultra-low 0.14% annual fees.
- ETF undercuts BlackRock’s 0.25% and Grayscale’s 0.15%, attracting investors.
- Coinbase serves as custodian, BNY Mellon manages administration, tracking Bitcoin passively.
Morgan Stanley is poised to make an entry in the Bitcoin ETF market with a fee structure that could change the dynamics of competition in the space. According to a recent SEC filing, Morgan Stanley intends to charge a mere 14 basis points annually for its MSBT product.
On March 28, 2026, a crypto commentator, Marty Party on X, shared that BlackRock’s iShares Bitcoin Trust, symbol IBIT, has an annual fee of 0.25%, whereas Grayscale’s Bitcoin Mini Trust ETF currently has an annual fee of 0.15%. This makes Morgan Stanley’s ETF, by far, the most affordable option for investors.
The low fees may prove attractive not only to big investment advisers but also to individual investors, according to investment experts, as lower fees tend to bring in more money in the long run.
The approval from the stock exchange has been received for the listing of MSBT, and this has led many investors to speculate that Morgan Stanley could be the first bank to launch a spot Bitcoin ETF directly. Investors have pointed out that low costs and approval from the stock exchange could lead to a shift in focus for Bitcoin ETFs.
The structure of the MSBT will be similar to existing spot Bitcoin ETFs. Coinbase will be the prime broker and custodian of the BTC assets, while BNY Mellon will handle administrative and transfer services. It will track the price of BTC passively without trying to make a profit from the price movements.
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Morgan Stanley’s Strategic Bitcoin Move
The head of digital asset strategy at Morgan Stanley, Amy Oldenburg, stated that the move into crypto was not one of FOMO, but rather something the firm has been preparing for over time: “It’s not just FOMO. We have been working on modernizing financial infrastructure for years, and this ETF is part of that journey.”
The bank has accumulated a substantial stake in the Bitcoin ETF, with nearly $667 million in its flagship fund, amounting to $729 million. Morgan Stanley is also looking to expand its technology to include digital forms of its equities later in the year.
However, to integrate crypto with traditional banking, the fundamental infrastructure of both systems must be rethought as they operate in vastly different ways.
With low fees, a listing on the NYSE, and solid institutional support, Morgan Stanley’s MSBT has the potential to be a major participant in the Bitcoin ETF space and bring in billions of dollars in investment while setting a new standard for low fees.
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