Morgan Stanley Bitcoin ETF Swamps Redemptions With $371 Million Inflows
Morgan Stanley's Bitcoin ETF has seen significant inflows in its first three months of trading. The fund, known as MSBT, reported $371.1 million in gross share contributions during its first 85 days on the market, with $200.3 million coming from cash and $170.8 million worth of Bitcoin.
The net asset decrease of $66.8 million appears alarming at first glance, but nearly all of it came from unrealized depreciation of the fund's Bitcoin holdings. The remaining losses were small, totaling just $618,611 in realized Bitcoin losses and $72,288 in sponsor fees.
Redemption activity was minimal, with only 1.42% of gross contributions coming from redemption distributions between April 7 and June 30. Shares outstanding increased by 23.17% from June 30 to July 31, reaching 21.74 million shares.