Morgan Stanley Files Lowest-Fee Bitcoin Spot ETF at 0.14%, Undercutting BlackRock's IBIT Dominance
Investment giant Morgan Stanley has filed an S-1 registration statement for its spot Bitcoin exchange-traded fund with a record-low management fee of just 0.14%. This pricing strategy explicitly aims to undercut every rival on the market, including BlackRock's dominant IBIT ETF which charges higher fees despite having already launched successfully in January and February.
Key Points
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1Morgan Stanley has filed an S-1 registration statement proposing its first Bitcoin exchange-traded fund with a sponsor fee of just 0.14%.
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2This proposed low cost would make the product cheaper than any other spot ETF currently available in the US market if approved, undercutting rivals like BlackRock and Grayscale by one basis point or more.
Developments
Perspectives
Morgan Stanley has filed an S-1 registration statement proposing a fee of just one-tenth percent for its Bitcoin exchange-traded fund (ETF), which would make it the cheapest product in US markets if approved.
— [Mar 28, 09:56] Morgan Stanley Files Spot BTC ETF at Lowest Fee YetMorgan Stanley's proposed spot bitcoin fee of one-tenth percent is lower than that offered by any other rival on the market and would make it a cheaper product if approved.
— [Mar 28, 09:56] Morgan Stanley Files Spot BTC ETF at Lowest Fee YetMorgan Stanley's low-fee bitcoin exchange-traded fund filing challenges Blackrock IBIT dominance in spot Bitcoin funds with adviser-driven distribution poised to influence flows and reshape the balance of power among issuers.
— [Mar 28, 09:56] Morgan Stanley Files Spot BTC ETF at Lowest Fee YetMorgan Stanley's proposed fee is one basis point lower than that offered by Grayscale Bitcoin Mini Trust (GBTC), which currently offers the lowest cost option on US markets.
— [Mar 28, 09:56] Morgan Stanley Files Spot BTC ETF at Lowest Fee YetMorgan Stanley's proposed fee of one-tenth percent is lower than that offered by any other rival and would make it a cheaper product if approved; the bank plans to launch its spot bitcoin exchange-traded fund.
— [Mar 28, 09:56] Morgan Stanley Files Spot BTC ETF at Lowest Fee YetMorgan Stanley filed an amended S-1 with the SEC proposing its spot Bitcoin ETF (MSBT) at a record-low annualized sponsor fee of 0.14%. This pricing would make it cheaper than Grayscale's and BlackRock/iShares' funds, positioning MSBT as potentially becoming U.S.'s lowest-cost new entrant in this category if approved by regulators before the end of April or early May (the text mentions "early April" but also notes a January 2026 filing date).
Morgan Stanley filed Amendment No.3 on March 27 proposing its spot bitcoin ETF MSBT with an expense ratio of just $0.14\%$, making it significantly cheaper than BlackRock's IBIT and the cheapest option available to date. Analysts predict this low-fee structure will launch in early April, potentially reshaping competition among issuers by easing allocation decisions for advisers driving institutional flows into spot bitcoin products.