Morgan Stanley is entering the spot Bitcoin ETF market with the lowest fee yet. The largest US wealth manager has proposed a 0.14% annual fee for its Bitcoin Trust (MSBT), undercutting every existing competitor.
Morgan Stanley Proposes Lowest-Fee Bitcoin ETF
29 March 2026 - 18:37 CEST
That rate is 0.11 percentage points below BlackRock’s iShares Bitcoin Trust (IBIT) and one basis point below Grayscale’s Bitcoin Mini Trust.
The aggressive pricing signals the start of a potential fee war in the $83bn spot Bitcoin ETF market. Morgan Stanley, traditionally a major distributor of other issuers’ ETFs, is now competing directly for assets.
Leader in US wealth management
In the amended S-1 registration filing with the US Securities and Exchange Commission (SEC), Morgan Stanley said the Bank of New York Mellon and Coinbase Custody Trust Co will serve as custodians for the Bitcoin trust (MSBT). This trust is expected to be listed on the NYSE Arca.
Morgan Stanley brings significant firepower to the contest. It manages $6.2tn in wealth and $9.3tn across its combined wealth and investment management businesses, with 16,000 financial advisers.
Solana, Ether ETFs waiting in the wings
The Bitcoin ETF may just be the first shot. Morgan Stanley has also sought approval from the SEC for spot Solana and ether ETFs.
Bloomberg ETF analyst Eric Balchunas called the fee move a “semi-shock,” noting it removes any conflict for the bank’s own advisers and positions it to attract outside assets as well.
Catching up with the dominant IBIT will take some doing. As of early 2026, the BlackRock juggernaut ETF commanded more than $86bn in net assets, about four times Fidelity's FBTC. IBIT was the fastest ETF in history to reach various assets under management (AUM) milestones, hitting $70bn in under a year.
