Morgan Stanley Bitcoin ETF Challenges BlackRock's Dominance

Morgan Stanley has launched its spot Bitcoin ETF, MSBT, with a significantly lower fee of 0.14% compared to BlackRock's IBIT fund, which charges 0.25%. While IBIT currently leads in liquidity and trading volume with approximately $55 billion in assets, Morgan Stanley's extensive wealth management network and vast client capital could divert significant investor inflows. This move intensifies competition in the Bitcoin ETF market, emphasizing fee sensitivity and distribution power as key differentiators. The launch signals a potential shift, with MSBT aiming to leverage its cost advantage and Morgan Stanley's distribution channels to challenge IBIT's established position.