Morgan Stanley's spot Bitcoin (BTC) ETF began trading on NYSE Arca under the ticker MSBT, with 1.6 million shares and approximately $34 million in cryptocurrency inflow on the first day.

The launch makes Morgan Stanley the first major American bank to issue a spot Bitcoin ETF under its own name.

Cheapest BTC ETF in a tight market

MSBT has a management fee of 0.14%, underpricing BlackRock's iShares Bitcoin Trust (IBIT) which stands at 0.25%.

The fund joins more than 10 spot Bitcoin ETFs launched in the last two years, which together have over $85 billion in assets.

Bloomberg's ETF analyst Eric Balchunas predicts that MSBT could reach $50 million in revenue on the first day. He places the fund among the top 1% of ETF launches in the past year.

Distribution power vs. liquidity

Morgan Stanley has around 16,000 wealth advisors managing $9.3 trillion in client assets.

The network gives MSBT an advantage in distribution that no previous Bitcoin ETF issuer has been able to match.

Nate Geraci, head of NovaDius Wealth Management, calls distribution "king in the ETF market" and says that Morgan Stanley's advisory network combined with the lowest fees provides a strong recipe.

The bank also plans to launch cryptocurrency retail on E-Trade in the first half of 2026, to create a multi-channel approach to access digital assets.

Whether MSBT can maintain momentum against IBIT's strong liquidity and dominant options market will determine if Wall Street's entry changes the competitive balance.