Morgan Stanley's Bitcoin Trust Hits $400 Million in Just Over Three Months

Morgan Stanley's Bitcoin Trust has attracted over $400 million since April, according to Amy Oldenburg, head of digital asset strategy. The product, which boasts a sponsor fee of 0.14%, is currently the cheapest spot Bitcoin fund on Wall Street.

Oldenburg stated that roughly half of this amount came before Morgan Stanley's sales team or advisors got involved, indicating strong client interest and brand recognition. Self-directed clients placed trades on their own, bringing in the first $200 million or so without any distribution efforts from the company.

The sponsor fee is 11 basis points lower than BlackRock's iShares Bitcoin Trust, making Morgan Stanley's product an attractive option for investors seeking a low-cost entry point into cryptocurrency investing. This move by Morgan Stanley marks another step in the growing mainstream acceptance of digital assets and their inclusion in traditional investment portfolios.

E*TRADE from Morgan Stanley launched its spot crypto platform in July, allowing eligible clients to buy, sell, and hold Bitcoin, Ethereum, and Solana at 50 basis points via Zero Hash. Oldenburg noted that the list of supported assets will continue to evolve, with self-custody and transfers on the roadmap.