{"id":70342,"date":"2026-03-28T17:48:20","date_gmt":"2026-03-28T17:48:20","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/morgan-stanley-eyes-dominance-in-bitcoin-etfs-as-its-low-fee-undercuts-blackrocks-ibit-featured-bitcoin-news\/"},"modified":"2026-03-28T17:48:20","modified_gmt":"2026-03-28T17:48:20","slug":"morgan-stanley-eyes-dominance-in-bitcoin-etfs-as-its-low-fee-undercuts-blackrocks-ibit-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/morgan-stanley-eyes-dominance-in-bitcoin-etfs-as-its-low-fee-undercuts-blackrocks-ibit-featured-bitcoin-news\/","title":{"rendered":"Morgan Stanley Eyes Dominance in Bitcoin ETFs as Its Low Fee Undercuts Blackrock\u2019s IBIT \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Morgan Stanley Undercuts Blackrock With Low-Fee Bitcoin ETF<\/span> Filing<\/h2>\n

A shift in bitcoin<\/span> exchange-traded funds (ETFs) pricing is emerging after Morgan Stanley filed Amendment No. 3<\/a> to its S-1 registration on March 27, outlining a proposed low-fee structure for a spot bitcoin<\/span> product. The filing signals a potential inflection point for cost dynamics and competition among issuers. Bloomberg ETF analyst Eric Balchunas shared on social media platform X:<\/p>\n

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\u201cSemi-shock: Morgan Stanley\u2019s bitcoin ETF<\/span> will charge 14bps, making it the cheapest spot bitcoin ETF<\/span> on the market and 11bps cheaper than IBIT.\u201d<\/p>\n<\/blockquote>\n

\u201cThis means none of their advisors will feel conflicted using it and they have shot at getting outside assets. Smart. Launch prob in next two weeks,\u201d the analyst stated. He believes that the pricing advantage could ease allocation decisions within advisory channels while opening the door to external inflows.<\/p>\n

Another Bloomberg ETF analyst, James Seyffart, commented on X: \u201cWOW. We have the fee on Morgan Stanley\u2019s spot bitcoin ETF<\/span> MSBT. Will charge just 0.14% !!! Big move here. They are not messing around. Likely to launch in early April.\u201d<\/p>\n

The amended registration describes a proposed fund structure centered on cost efficiency and direct bitcoin<\/span> exposure, positioning the product against existing spot ETF offerings with higher expense ratios. The development introduces potential downward pressure on fees across issuers competing for institutional and adviser-driven allocations. According to the prospectus, the Morgan Stanley Bitcoin<\/span> Trust is designed as a passive vehicle that tracks bitcoin<\/span> using the Coindesk Bitcoin<\/span> Benchmark 4PM NY Settlement Rate while holding bitcoin<\/span> directly without leverage<\/span> or derivatives. The fund facilitates share creation and redemption through bitcoin<\/span> transfers tied to large basket sizes, with authorized participants able to transact in cash or in-kind via designated counterparties.<\/p>\n

Blackrock Dominance Faces Pressure as Morgan Stanley Scale Looms<\/h2>\n

Comparative data shows Blackrock\u2019s Ishares Bitcoin<\/span> Trust ETF (IBIT) carries a 0.25% expense ratio and holds approximately 785,241 BTC<\/span> valued at approximately $54.09 billion, representing a 100% allocation to bitcoin<\/span> with minimal cash exposure as of March 26. The scale of these holdings underscores its dominant market position, while the fee differential highlights how Morgan Stanley\u2019s proposed pricing could challenge established leaders.<\/p>\n

Additional projections point to significantly larger potential inflows tied to Morgan Stanley\u2019s wealth management platform. Phong Le, president and CEO of Strategy, stated<\/a> that Morgan Stanley Wealth Management oversees about $8 trillion in client assets and recommends a 0%\u20134% bitcoin<\/span> allocation range, which could translate into substantial demand. \u201cA 2% allocation would represent $160 billion, ~3x the size of IBIT. MSBT: Monster Bitcoin<\/span>,\u201d Le said. The estimate highlights how even modest portfolio shifts could materially expand the scale of spot bitcoin ETF<\/span> markets.<\/p>\n

Fee positioning across issuers shows a tight clustering below 0.30%, with Morgan Stanley\u2019s proposed 0.14% undercutting rivals, including Grayscale\u2019s Bitcoin<\/span> Mini Trust at 0.15%, Franklin Templeton\u2019s EZBC at 0.19%, and offerings from Bitwise and Vaneck at 0.20%. Ark 21Shares maintains a 0.21% fee, while Blackrock\u2019s IBIT, Fidelity\u2019s FBTC, and Invesco Galaxy\u2019s BTCO each sit at 0.25%, underscoring the significance of further compression at the lower end of the range.<\/p>\n

Scale remains a defining factor in the proposal\u2019s broader implications. The Bloomberg analyst noted:<\/p>\n

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\u201cThe reason this particular launch is so interesting is that this will be the first bank to put out spot BTC<\/span> ETF and this bank happens to have 16K advisors managing $6T in assets. They are the ultimate gatekeepers of rich boomer money.\u201d<\/p>\n<\/blockquote>\n

He pointed to adviser influence as a key driver that could shape flows and competitive responses across the bitcoin ETF<\/a> market.<\/p>\n

FAQ \ud83e\udded<\/h2>\n