Banking giant Morgan Stanley’s long-awaited spot Bitcoin ETF, MSBT, started trading yesterday on NYSE Arca.
And on its first day, it pulled in about $34 million in trading volume and saw over 1.6 million shares traded.
Morgan Stanley Debuts Low-Fee BTC ETF
ETF analyst Eric Balchunas had described MSBT’s debut as “arguably the biggest Bitcoin ETF launch since they began,” giving it a first-year AUM target of $5 billion.
Halfway through its first trading session, Balchunas reported that the product had reached $27 million, and this was after he had estimated it would hit $30 million, before revising his projection to $50 million, which he said would put the debut in the top 1% of ETF launches. Eventually, it added another $7 million to close the day, drawing $34 million in total.
The fund launched with a 0.14% fee, which NovaDius Wealth President Nate Geraci called “the lowest cost spot BTC ETF on market.” That pricing undercuts competitors such as BlackRock’s IBIT, which charges 0.25%, and Grayscale’s Bitcoin Mini Trust at 0.15%.
Allyson Wallace, Morgan Stanley’s global head of ETFs, told Bloomberg that the low fee was a deliberate strategy meant to show the bank’s commitment to the product. According to her, demand has been high, especially from high-net-worth investors.
On-chain and fund flow data support her sentiment, with Bitcoin ETF tracking account HODL15Capital reporting that MSBT bought 430 BTC on its first day.
ETF Flows Remain Uneven
It has been a mixed period for spot Bitcoin ETFs, with SoSoValue’s data showing total net outflows of about $124 million across the funds yesterday. Before that, the funds collectively lost $159 million, breaking a two-day green run from last Thursday that saw about $480 million in net inflows.
Meanwhile, BTC itself is trading just above $71,000, shaving off almost $1,800 from a three-week peak near $73,000 that it hit after reports emerged that Iran would require ships transiting the Strait of Hormuz to pay a toll in Bitcoin.
Morgan Stanley’s entry also builds on earlier filings disclosed in January 2026, when the bank submitted proposals for Bitcoin and Solana-linked funds. At the time, reports pointed to a broader shift among large financial institutions moving from distributing third-party products to issuing their own.
MSBT’s structure reflects that transition. The fund combines traditional custody through BNY Mellon with crypto-native infrastructure from Coinbase, while offering exposure to Bitcoin price movements without requiring direct ownership of the asset.
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