Morgan Stanley launches MSBT, a low-cost spot Bitcoin ETF gaining strong initial investor interest.

Morgan Stanley has introduced the Morgan Stanley Bitcoin Trust (MSBT), a new spot Bitcoin ETF with a notably low expense ratio of 14 basis points, undercutting competitors like BlackRock's iShares IBIT at 25 basis points. The ETF attracted about $35 million on its first day, placing it among the top 1% of new ETF launches by initial inflows. While MSBT offers the same Bitcoin exposure as other spot ETFs, its lower fees and the Morgan Stanley brand could make it a preferred choice for financial advisors and investors. The launch signals growing institutional acceptance of Bitcoin ETFs and may prompt competition, though major banks like JP Morgan are not expected to enter the space soon. Investors new to Bitcoin ETFs might consider MSBT for cost-effective exposure, but existing holders are cautioned against switching solely for fee savings due to tax implications.