Morgan Stanley's Bitcoin ETF Sees $371 Million Inflow Amid $66.8 Million Net Asset Drop

Morgan Stanley's Bitcoin ETF, known as Morgan Stanley Bitcoin Trust (MSBT), has seen significant activity since its launch. According to a recent filing, MSBT recorded a $66.8 million decrease in net assets from operations during its first 85 days. This decline is largely due to the depreciation of Bitcoin, with unrealized losses accounting for nearly 99% of the operating-period decrease.

Despite this, MSBT attracted $371.1 million in gross share contributions against just $5.26 million in redemption distributions. This indicates that creations dominated redemptions during the period, with the trust issuing 17.9 million shares and redeeming 250,000 shares. The net asset value per share fell by 14.01%, from $19.70 to $16.94.

The trust held 5,059.3077 BTC at quarter-end, with a cost basis of $365.18 million and a fair value of $299 million, based on a Bitcoin price of $59,101.49. The filing's GAAP figures and daily ETF flow tables use different measurement bases.