Morgan Stanley's bitcoin ETP raises $100M in first week, driven by self-directed investors.

Morgan Stanley launched its MSBT bitcoin exchange-traded product (ETP), which attracted over $100 million within its first week, solely from self-directed investors before financial advisors began recommending it. The bank encourages clients to allocate 2-4% of their portfolios to bitcoin but faces challenges in advisor education, as most investments come from self-directed accounts. Morgan Stanley is pursuing regulatory approval for direct crypto custody and spot trading, but broader adoption of bitcoin on U.S. bank balance sheets remains hindered by regulatory and international coordination issues. This launch highlights strong demand for regulated bitcoin products despite ongoing regulatory hurdles.