Morgan Stanley Sets Record-Low Fee for Bitcoin ETF

Morgan Stanley has made a significant move in the cryptocurrency market by reducing its management fee for its spot Bitcoin ETF to a record-low of 0.14%. This announcement is part of the bank's updated S-1 registration statement filed with the US Securities and Exchange Commission (SEC) for its said Bitcoin ETF.

The proposed management fee would be lower than that of other major players in the market, including Grayscale's Bitcoin Mini Trust at 0.15% and BlackRock's iShares Bitcoin Trust at 0.25%. If approved by the SEC, this would make Morgan Stanley's fees the most competitive in the $85 billion to $92 billion spot Bitcoin ETF market.

The bank has been increasingly active in the cryptocurrency space, having filed applications for a spot Bitcoin ETF and a national trust banking charter in February to provide crypto custody, trading, and staking services. In addition, Morgan Stanley recommends that its clients allocate 2%-4% of their investment portfolios to cryptocurrencies, including those in individual retirement accounts (IRAs) and 401(k) plans.