Morgan Stanley's Cheapest Bitcoin ETF Attracts $400 Million in Six Months

Morgan Stanley's Bitcoin Trust has attracted over $400 million since April, making it Wall Street's cheapest bitcoin ETF. According to Amy Oldenburg, Morgan Stanley's head of digital asset strategy, this is largely due to self-directed client trades that came in on brand recognition rather than distribution efforts.

Oldenburg noted that around half of the $400 million was invested before the sales team even got involved. The remaining half was driven by advisor-driven activity.

The Morgan Stanley Bitcoin Trust has a sponsor fee of 0.14%, which is 11 basis points less than BlackRock's iShares Bitcoin Trust and 136 basis points lower than Grayscale's Bitcoin Trust.

E*TRADE from Morgan Stanley launched its spot crypto platform in July, allowing clients to buy, sell, and hold Bitcoin, Ethereum, and Solana at 50 basis points through digital asset infrastructure provider Zero Hash. The assets are held in a linked Zero Hash account, not with Morgan Stanley, and are not FDIC or SIPC-insured.

Oldenburg stated that the list of three assets will continue to evolve and that self-custody and transfers are on the roadmap. She also mentioned that the firm is working hard to make sure they can turn on additional assets in the near term.