Morgan Stanley's New Spot Bitcoin ETF Enters Market as Cheapest Option

Morgan Stanley's new spot Bitcoin ETF, the Morgan Stanley Bitcoin Trust (MSBT), has entered the market with a fee of 0.14%, making it the cheapest among its peers on U.S. exchanges. This rate undercuts Grayscale's Bitcoin Mini Trust (BTC) by one basis point and BlackRock's iShares Bitcoin Trust (IBIT) by 110 basis points. The MSBT arrived on April 8, 2026.

The fee war in the spot Bitcoin ETF market has taken a new turn with the introduction of MSBT. This bank-issued ETF competes directly with Fidelity's Wise Origin Bitcoin Fund (FBTC) and WisdomTree Bitcoin Fund (BTCW), both of which charge a 0.25% fee.

The difference between the cheapest and most expensive wrappers remains significant, with Grayscale's GBTC carrying a 1.50% fee. This spread translates to a substantial performance gap over time, with a one-basis-point difference amounting to roughly $35 on a $10,000 investment over ten years.

MSBT has accumulated assets quickly due to Morgan Stanley's network of 16,000 financial advisors managing roughly $6.2 trillion in client assets. However, the fund lacks history and options market depth, which is one of the reasons why BlackRock's IBIT remains a preferred choice among investors.