Morgan Stanley Proposes Low-Cost Spot Bitcoin ETF

Morgan Stanley's latest filing with the Securities and Exchange Commission (SEC) has brought attention to a proposed spot Bitcoin ETF that could potentially disrupt the market. The proposed fund, MSBT, would trade on NYSE Arca under the ticker symbol and have a fee rate of 0.14%, which is significantly lower than existing funds.

The proposed 0.14% fee is described as a floor rate, meaning it represents the lowest possible cost to investors holding the fund. This is in contrast to other issuers that offer temporary fee waivers or promotions. Morgan Stanley's proposed fund would be the first to offer a permanent low fee without any conditions attached.

If approved by regulators, MSBT could pressure existing issuers to cut their rates further and redirect flows from other funds. The broader institutional appetite for Bitcoin products continues to grow alongside evolving crypto regulatory frameworks in the United States.