Bitcoin ETFs Gain Traction as Morgan Stanley Enters Market

Morgan Stanley's Bitcoin ETF has marked its entrance into the market, providing investors with a lower-cost option to gain exposure to the cryptocurrency. The fund is part of an emerging trend in the ETF landscape, where products are being designed to cater to different investor segments and trading preferences.

The launch of Morgan Stanley's fund follows the debut of another product from Nicholas Wealth, which allows for trading in futures, options, and other exchange-traded products during non-US trading hours. This new class of funds is often referred to as 'vampire' funds due to their ability to trade during off-hours.

David Nicholas, CEO of Nicholas Wealth's XFunds, attributes the success of these funds to the strong returns generated by the iShares Bitcoin Trust (IBIT) during non-US trading hours. IBIT has returned 200% since inception through March, with all gains accounted for in overnight hours.

The Morgan Stanley Bitcoin Trust charges a slim 14 basis points, making it an attractive option for investors seeking to gain exposure to bitcoin at a lower cost. The fund's launch has generated significant interest among investors, with $34 million in trading volume and $30 million in net inflows on its first day.