Morgan Stanley Bitcoin Trust extended its first month of trading without any net outflows, giving the new spot Bitcoin ETF a strong early position in a volatile and highly competitive market.
The fund, known as MSBT, attracted $193 million in net inflows after its April 8 launch and lifted assets above $240 million. Its clean first month stood out as Bitcoin prices moved between the mid $70,000 area and the low $80,000 range, while several rival Bitcoin funds recorded redemptions.
MSBT Builds Early Lead
MSBT started trading with strong demand from the opening session. The fund drew $30.6 million in deposits and recorded $34 million in trading volume on its first day. Amy Oldenburg, Morgan Stanley’s head of digital asset strategy, described the launch as Morgan Stanley’s strongest ETF debut to date.
Bloomberg ETF analyst Eric Balchunas also placed the opening performance in the 99th percentile of ETF debuts. That strong start helped MSBT gain attention in a crowded market that includes larger products from BlackRock, Fidelity Investments, and ARK Invest.
The fund recorded 17 days of inflows and five flat sessions in its first month, according to SoSoValue data cited in the report. It did not post a single day of net redemptions during that period.
Low Fee Supports Demand
Morgan Stanley set MSBT’s sponsor fee at 0.14%, which ranks among the lowest fees in the United States spot Bitcoin ETF market. The pricing comes below Bitwise at 0.20%, ARKB at 0.21%, and the 0.25% charged by BlackRock’s IBIT and Fidelity’s FBTC.
The fee gap may appear small for retail investors, but it can matter for large institutions. An 11 basis point difference from IBIT could save about $1.1 million a year for every $1 billion invested.
MSBT also gained traction before it formally entered Morgan Stanley’s advisory wealth management platform. Oldenburg said nearly all early activity came from self-directed clients, rather than advisor-led sales. This suggests early demand came from investors who chose the product directly, not from a broad internal wealth distribution push.
Rivals Face Redemption Pressure
MSBT’s steady inflows came as competitors faced sharper swings. In the final two trading sessions covered in the report, MSBT attracted $13 million in fresh new money while rival Bitcoin ETFs saw $422 million in combined exits.
On May 7, MSBT added $5.7 million even as Fidelity lost nearly $100 million, BlackRock shed more than $27 million, and ARKB posted $26.6 million in outflows.
MSBT also traded at a 0.24% premium to net asset value, which pointed to stronger buy pressure than IBIT or FBTC. Bitcoin Treasuries data showed the fund held about 2,620 Bitcoin, ranking it as the 32nd largest Bitcoin holding ETF or exchange.
