Key Highlights
- E*Trade introduces cryptocurrency trading through a pilot program charging 0.50% per transaction
- Pricing structure beats comparable rates from Coinbase, Robinhood, and Charles Schwab
- Service will extend to E*Trade’s complete customer base of 8.6 million accounts in 2025
- Morgan Stanley’s spot Bitcoin ETF (MSBT) has accumulated $92 million in net inflows
- Charles Schwab introduced direct cryptocurrency trading in April with 0.75% transaction costs
Morgan Stanley has initiated a cryptocurrency trading trial program through E*Trade, implementing a transaction cost of 50 basis points (0.50%). The financial institution validated these specifics to Cointelegraph following Tuesday’s Bloomberg coverage.
This pricing model represents a reduction compared to typical consumer rates offered by Coinbase, Robinhood, and Charles Schwab. Schwab unveiled its proprietary spot Bitcoin and Ethereum trading service in April through its “Schwab Crypto” division, imposing a 0.75% transaction charge.
While the E*Trade trial remains restricted in scope currently, Morgan Stanley intends to make the service accessible to its entire 8.6 million E*Trade client base prior to 2025’s conclusion.
This development comes after Morgan Stanley introduced its spot Bitcoin ETF with the ticker symbol MSBT on the New York Stock Exchange in April. The investment vehicle features a 0.14% management expense ratio, positioning it among the most competitively priced options available.
MSBT ETF Attracts Significant Capital
Data from Farside Investors indicates the MSBT ETF has captured $92 million in cumulative net inflows following its market debut. The fund attracted $30.6 million during its inaugural trading session on NYSE Arca.
Eric Balchunas, an ETF analyst at Bloomberg, characterized the introduction as a “big deal,” highlighting Morgan Stanley’s substantial $7 trillion asset management portfolio. He noted the competitive cost structure could facilitate easier Bitcoin allocation recommendations from the bank’s financial advisors to their clients.
Morgan Stanley holds the distinction of being the first major banking institution to create its own Bitcoin ETF. While VanEck’s HODL ETF maintains a competitive advantage through its fee waiver program, MSBT ranks among the most economical options in the marketplace.
Traditional Finance Institutions Embrace Digital Assets
Goldman Sachs submitted regulatory filings with the SEC in April proposing a Bitcoin Premium Income ETF. The planned fund would create revenue streams through the sale of call options on Bitcoin exchange-traded products, avoiding direct Bitcoin ownership.
BNY Mellon introduced a digital asset custody solution in October 2022, enabling approved clients to store and transfer Bitcoin and Ethereum.
These strategic initiatives demonstrate that multiple prominent financial organizations are broadening their cryptocurrency offerings for both retail investors and institutional participants.
Morgan Stanley has adopted a more competitive pricing strategy for its cryptocurrency trading platform compared to industry competitors. This approach mirrors the cost-efficient methodology implemented with the MSBT ETF.
It should be acknowledged that specialized platforms such as Kraken Pro, Binance US, and certain Coinbase Advanced subscription levels provide lower transaction costs than Morgan Stanley’s 0.50% rate for qualified users.
The E*Trade cryptocurrency pilot program is presently operational on a limited basis. The comprehensive deployment to all account holders is anticipated before year-end.
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