Morgan Stanley Proposes Record-Low Fee for Spot Bitcoin ETF

Morgan Stanley has taken a significant step towards launching its spot Bitcoin ETF by filing an amended registration statement with the Securities and Exchange Commission (SEC). The proposed annualized sponsor fee of 0.14% would make it the cheapest spot Bitcoin product available to US investors, undercutting other major providers such as Grayscale and BlackRock.

The move is seen as a big change in the market, according to Bloomberg analysts, who predict that the fund will likely launch in early April. Morgan Stanley's distribution network of approximately 16,000 financial advisors would face no conflicts recommending the fund at this price, said Eric Balchunas, fellow Bloomberg analyst.

The firm's financial advisors oversee a substantial pool of client assets, with one source estimating around $9.3 trillion and another citing $6.2 trillion. The competitively priced proprietary product could shift the balance of crypto ETF activity on Morgan Stanley's platform, which currently comes from self-directed investors rather than advisor-managed accounts.