More than two years after the launch of the first 11 spot Bitcoin exchange-traded funds (ETFs) in the United States, the cryptocurrency market stands on the brink of a significant development. A 12th Bitcoin ETF, issued by Morgan Stanley, a major Wall Street bank managing approximately $1.9 trillion in assets, is poised to debut on Wednesday. According to Bloomberg’s ETF Analyst, Eric Balchunas, the Morgan Stanley Bitcoin Trust (ticker MSBT) is expected to start trading on NYSE Arca, with an initial launch date cited as April 8.
The Morgan Stanley Bitcoin Trust is designed to hold actual Bitcoin and will track the CoinDesk Bitcoin Benchmark 4 PM Settlement Rate. Notably, the fund does not employ leverage, derivatives, or engage in active trading strategies to navigate Bitcoin’s price volatility. Instead, it will rely on BNY and Coinbase Custody for the secure storage of the Bitcoin assets. The ETF is launching with around $1 million in seed capital and 50,000 shares available for trading.
Similar to its counterparts in the market, the Morgan Stanley trust provides investors with an opportunity to gain exposure to Bitcoin without the complexities of ownership and security associated with holding the cryptocurrency directly. What sets this fund apart is its competitive pricing, with an annual fee of just 0.14%. This fee is lower than BlackRock’s iShares Bitcoin Trust, which charges 0.25%, positioning Morgan Stanley’s ETF as an attractive option for institutional and retail investors alike.
The forthcoming launch signifies a critical moment for the cryptocurrency market, as it marks the first instance of a prominent U.S. bank offering a spot Bitcoin ETF. This development underscores the growing appetite among investors for alternative assets, including Bitcoin. Morgan Stanley is taking further steps to deepen its engagement in the digital assets space; it recently filed for spot Solana ETFs and has plans to introduce trading in Bitcoin, Ethereum, and Solana on E*Trade by the first half of 2026 through a collaboration with Zero Hash.
Spot ETFs have increasingly become a preferred vehicle for institutions seeking exposure to Bitcoin. Since the introduction of the first 11 funds in early January 2024, these ETFs have collectively attracted over $56 billion in net inflows, according to data from SoSoValue. Concurrently, there has been a notable surge in activity linked to derivatives associated with these products. The dynamics surrounding options related to the iShares Bitcoin Trust have received attention, particularly regarding their perceived impact on Bitcoin’s price fluctuations earlier this year.
The emergence of these alternative investment vehicles has played a crucial role in mainstreaming Bitcoin within the financial landscape, mitigating its historical volatility. Recent market trends indicate that Bitcoin’s implied volatility has begun to closely align with Wall Street’s fear indicator, the VIX, rising during price downturns and decreasing during upward movements.
With the impending launch of Morgan Stanley’s ETF, it is anticipated that these developments will further cement existing trends in the cryptocurrency market.
