TLDR
- MSBT recorded $193.6 million in cumulative inflows during its first month of trading.
- The fund posted 17 inflow days and five flat days since its launch.
- Morgan Stanley’s Bitcoin Trust avoided daily net outflows while rival funds saw redemptions.
- MSBT’s 0.14% sponsor fee is the lowest among U.S. spot Bitcoin ETFs.
- Most early inflows came from self-directed clients, not Morgan Stanley’s advisor network.
Morgan Stanley’s Morgan Stanley Bitcoin Trust, or MSBT, recorded strong demand in its first month. The spot Bitcoin ETF drew $193.6 million in cumulative net inflows from April 8 to May 7.
The fund also reached $239.6 million in net assets during the same period. It reported 17 days of inflows and five flat days, with no daily net outflows.
MSBT Opens With Strong Demand
MSBT launched on April 8 and started with $30.6 million in net inflows. It also recorded about $34 million in trading volume on its first day.
Amy Oldenburg, Morgan Stanley’s head of digital asset strategy, called it the bank’s strongest ETF debut. She said, “Almost all of that first week or two of activity was self-directed.”
The fund’s early demand came as the wider spot Bitcoin ETF market faced pressure. On launch day, the broader market recorded $94 million in net outflows.
Within six trading days, MSBT crossed $103 million in total net inflows. That figure passed WisdomTree’s BTCW, which had $86 million in all-time cumulative inflows.
No Daily Net Outflows During First Month
SoSoValue data showed that MSBT did not record a daily net outflow in its first month. Daily inflows slowed later, but they remained above zero.
The fund’s streak continued during weaker days for the wider market. On May 7, the spot Bitcoin ETF market saw $277.5 million in outflows.
On that day, MSBT still recorded $5.7 million in inflows. BlackRock’s IBIT posted $27.2 million in outflows, while Fidelity’s FBTC lost $97.6 million.
ARKB also recorded $26.6 million in outflows on May 7. MSBT traded at a 0.24% premium to net asset value.
Low Fee and Advisor Channel Draw Attention
MSBT charges a 0.14% annual sponsor fee. That is lower than the Grayscale Bitcoin Mini Trust fee of 0.15%.
It is also below Bitwise’s BITB, ARKB, IBIT, and FBTC. Grayscale’s GBTC still charges a much higher 1.50% fee.
The fee gap may matter more for large investors. At $1 billion invested, the gap with IBIT equals about $1.1 million per year.
Morgan Stanley’s advisor network was not fully open to MSBT during its first weeks. The bank has about 16,000 financial advisors and $9.3 trillion in client assets.
Oldenburg said early activity came mostly from self-directed clients. The advisor platform could add another source of demand once access expands.
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