BlackRock Slashes IBIT Fees Amid Bitcoin ETF Fee War

The Bitcoin ETF landscape is heating up as BlackRock reduces the expense ratio of its iShares Bitcoin Trust (IBIT) to 0.15% in a move to defend its market position.

This reduction comes as Morgan Stanley prepares to launch its MSBT fund with an annual expense ratio of 0.14%, sparking a fee war in the industry.

BlackRock's IBIT has been one of the most successful Bitcoin ETFs, reaching $50 billion in assets just seven weeks after its January 11 launch and surpassing BlackRock's gold ETF.

The fund also hit a monthly inflow milestone of $15 billion, with $604 million coming in on a recent Thursday, and over three-quarters of IBIT's assets under management come from flows rather than price gains.