Morgan Stanley has filed to launch the lowest-cost spot Bitcoin ETF in the United States, proposing an annual fee of just 0.14% for its Morgan Stanley Bitcoin Trust (MSBT). The move undercuts Grayscale's current market-low of 0.15% by a single basis point and drops significantly below BlackRock's IBIT at 0.25%. If approved by the SEC—expected as early as April—MSBT would trade on the NYSE and add fresh competitive pressure to a sector already dominated by fee compression.
What makes this filing particularly significant is Morgan Stanley's distribution advantage. With approximately 16,000 financial advisors managing around US$8 trillion (AU$11.6 trillion) in client assets, even modest allocation shifts could reshape Bitcoin's institutional landscape. A 2% allocation across that base would funnel roughly AU$232 billion into Bitcoin—nearly three times BlackRock's current IBIT holdings. Coinbase will serve as Bitcoin custodian, while BNY Mellon handles cash management and administration.
For Australian Bitcoin investors watching US market trends, this move signals intensifying institutional adoption and demonstrates that major banks now see Bitcoin as core to their product offerings. The race to lower fees benefits investors globally, as competitive pressure typically flows across international markets. As the US spot Bitcoin ETF market now holds approximately AU$120 billion in assets, Morgan Stanley's entry could accelerate further mainstream adoption.
Source: Morgan Stanley Sparks Fee War With Ultra-Low Bitcoin ETF Proposal — Crypto News Australia
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