Morgan Stanley entered the Bitcoin ETF market with its Morgan Stanley Bitcoin Trust (MSBT), attracting nearly $200 million in significant inflows within one month.
Data shows that the product was launched on April 8 and attracted nearly $194 million in net inflows during its first month.
Notably, the fund has accumulated approximately $240 million in assets under management, indicating growing demand for Bitcoin (Bitcoin gaining exposure through prominent Wall Street institutions).
The Morgan Stanley Bitcoin Trust is the first spot Bitcoin ETF launched by a major U.S. bank, holding physical Bitcoin and tracking the CoinDesk Bitcoin Benchmark Price.
The ETF has an expense ratio of just 0.14%, the lowest among similar spot Bitcoin ETFs in the U.S., which may be one reason for its rapid adoption.
In its first month of launch, MSBT recorded capital inflows over 17 trading days. It remained stable for five consecutive days, with zero days of net outflows.
This continuous flow of positive or neutral funding highlights investors' sustained interest, even amid overall market volatility.
Morgan Stanley's early success
The fund attracted $30.6 million in net inflows on its first day alone, with trading volume reaching approximately $34 million, making it Morgan Stanley's strongest ETF launch to date.
Morgan Stanley's early success largely came from self-directed investors, as the product was not initially available across its entire advisory platform.
With trillions of dollars in customer assets and thousands of advisors, a broader distribution channel could drive further growth. The inflow of funds also indicates that customers are actively seeking to invest through Bitcoin channels, preferring the bank's branded products over third-party offerings.
This strong debut comes as the U.S. spot Bitcoin ETF market has attracted over $3 billion in net inflows over the past six weeks, further underscoring growing institutional adoption of Bitcoin.
Industry observers point to MSBT’s low costs, Morgan Stanley’s brand strength, and the growing acceptance of Bitcoin as a portfolio diversification tool as key drivers.
Although MSBT’s scale remains smaller than leading products such as BlackRock’s iShares Bitcoin Trust, its launch highlights how major banks are increasingly integrating digital assets into traditional investment products.