Morgan Stanley Bitcoin ETF Records Paper Loss Amid Regulatory Progress

The Morgan Stanley Bitcoin Trust (MSBT) has recorded a paper loss of $66.8 million after 85 days of listing, despite receiving $371.1 million in subscriptions.

According to regulatory documents, during this period, the fund's net assets decreased due to operations, mainly from unrealized depreciation in Bitcoin ($66.17 million), realized losses of about $618,600, and sponsor fees of about $72,300.

The documents show that redemptions accounted for only 1.42% of total subscription contributions, with the fund issuing approximately 17.9 million shares and redeeming 250,000 shares (corresponding to 1,790 creation baskets and 25 redemption baskets).