Bloomberg ETF analyst James Seyffart (@JSeyff) confirmed that Morgan Stanley’s Bitcoin spot ETF (ticker $MSBT) charges a 0.14% fee, making it one of the lowest-fee Bitcoin spot ETFs in the U.S. market right now, and it’s 11 basis points cheaper than BlackRock’s IBIT. It’s expected to be officially listed in early April.
A fee war: MSBT vs major competitors
ETF issuer Fees HODL VanEck 0.00% (fee waiver period) MSBT Morgan Stanley 0.14% (latest) BTC Valkyrie 0.15% IBIT BlackRock 0.25% FBTC Fidelity 0.25%
It’s worth noting that VanEck’s HODL is currently temporarily free due to its fee reduction program, but that’s a temporary measure. MSBT’s 0.14% is a permanent, official fee and is among the most competitive in the market.
Strategic implications: Designed for its own financial advisors
Bloomberg ETF analyst Eric Balchunas pointed out that this fee structure is very smart. Morgan Stanley has a large number of financial advisors. In the past, because it didn’t have its own Bitcoin ETF, when advisors recommended other products to clients (such as IBIT), there were concerns about potential conflicts of interest. Now that MSBT’s fee is even lower than IBIT’s, using its own products not only eliminates those conflict-of-interest concerns, but also helps clients save money and significantly reduces promotional friction.
Morgan Stanley also files for SOL and ETH spot ETFs
Seyffart also noted that Morgan Stanley has filed for Solana and Ethereum spot ETFs as well. If MSBT’s low-fee strategy plays out, it’s expected that the SOL ETF and ETH ETF could also launch with fees below the market rate, further intensifying fee competition across the entire crypto ETF market.
This is another major development for the U.S. crypto ETF ecosystem after the NYSE recently loosened restrictions on Bitcoin ETF options. Overall, competition in institutional markets is accelerating.
This article, “Morgan Stanley’s Bitcoin ETF fee is 0.14%, 11 basis points cheaper than BlackRock, expected to be listed in April at the earliest,” first appeared on Chain News ABMedia.
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