Morgan Stanley has submitted an application to the U.S. Securities and Exchange Commission (SEC) for its own spot Bitcoin exchange-traded fund (ETF), proposing a management fee of just 0.14%. If approved, this would make it the cheapest Bitcoin ETF available in the United States, undercutting the current lowest fee of 0.15% charged by the Grayscale Bitcoin Mini Trust (BTC).
The filing, detailed in an S-1 registration statement, marks a strategic pivot for the Wall Street giant. Previously, Morgan Stanley acted only as a distributor, allowing select clients to access existing ETFs like BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC). By becoming an issuer, Morgan Stanley would directly compete with these firms for investor capital.
The proposed fund, with the ticker MSBT, is not yet live. The SEC's review process for new Bitcoin ETF applications typically takes several months, and approval is not guaranteed. The bank has specified a $1 million seed investment and named Coinbase and BNY Mellon as the proposed custodians for the product. The New York Stock Exchange (NYSE) has issued an official listing notice, citing an "imminent" launch.
Morgan Stanley's entry intensifies the ongoing fee war in the $85-$92 billion spot Bitcoin ETF market. Since the first wave of 11 spot Bitcoin ETFs was approved in January 2024, issuers have repeatedly slashed fees to attract assets. With approximately $7 trillion in client assets and a vast network of financial advisors, Morgan Stanley's built-in distribution could allow its fund to accumulate assets rapidly if it launches with this cost advantage.
The bank's move is part of a broader embrace of digital assets. In early 2026, it also filed for spot Solana and staked Ether ETFs and applied for a national trust banking charter to offer crypto custody, trading, and staking services. Morgan Stanley now recommends clients allocate 2%-4% of their portfolios to cryptocurrencies.
