Morgan Stanley Sets Record-Low Fee for Spot Bitcoin ETF

Morgan Stanley has made a significant move in the cryptocurrency space by proposing an ultra-low fee for its spot Bitcoin ETF, MSBT. According to recent filings with the US Securities and Exchange Commission (SEC), the proposed management fee would be 0.14%, significantly lower than several major rivals.

The filing places Morgan Stanley's product below Grayscale's Bitcoin Mini Trust at 0.15% and BlackRock's iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund, both charging 0.25%. This move could potentially pressure other players in the market to reconsider their fees or risk losing assets.

The proposed MSBT fund would be one of the first bank-issued spot Bitcoin ETFs if approved by regulators. With Morgan Stanley's significant distribution network and its advisors managing around $6.2 trillion in client assets, the product has a wide potential reach and could reshape the competitive landscape of the spot Bitcoin ETF market.