Morgan Stanley’s spot Bitcoin ETF has delivered a remarkable performance in its first month of trading. The fund, called “Morgan Stanley Bitcoin Trust” (MSBT), managed to attract a total of $194 million in its first 30 days without experiencing a single net outflow. This achievement surpasses the success of competing spot Bitcoin ETFs during the same period.
MSBT launched on April 8th and achieved a trading volume of approximately $34 million on its first day, with net inflows of $30.6 million. Bloomberg ETF analyst Eric Balchunas ranked this launch in the top 1% of all ETF launches. Moreover, on the day the fund launched, the overall spot Bitcoin ETF market experienced a net outflow of $94 million.
According to the data platform SoSoValue, inflows into MSBT initially reached double-digit millions of dollars daily in the first few weeks, but then dropped to single-digit millions in the following days. However, the fund did not experience negative flows on any trading day. During the same period, other major Bitcoin ETFs experienced significant fluctuations. For example, on May 7th, MSBT saw inflows of $5.7 million, while BlackRock’s IBIT fund saw outflows of $27.2 million and Fidelity Investments’ FBTC fund saw outflows of $97.6 million.
One of MSBT’s most notable advantages is its low management fee. The fund’s annual sponsorship fee of 0.14% is the lowest among spot Bitcoin ETFs in the US. This rate is even lower than Grayscale Bitcoin Mini Trust’s fee of 0.15%.
Experts believe that if Morgan Stanley includes its 16,000 financial advisors in the fund’s distribution network in the future, MSBT’s managed asset size could grow much faster.
*This is not investment advice.
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