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Morgan Stanley Sets 0.14% Fee for Proposed Bitcoin ETF After NYSE Listing Notice

The record-low price positions the bank to draw assets from pricier Bitcoin funds if the SEC clears trading.

Overview

  • The bank’s amended S-1 filed Friday set a 0.14% fee for the Morgan Stanley Bitcoin Trust, undercutting Grayscale’s 0.15% and BlackRock’s 0.25%.
  • NYSE Arca has posted a listing notice for the ticker MSBT, yet shares cannot trade until the SEC declares the registration effective.
  • Morgan Stanley named Coinbase for Bitcoin custody and BNY Mellon for fund services, and the trust would track Bitcoin’s price without using leverage or derivatives.
  • The firm’s roughly 16,000 financial advisors overseeing about $6.2 trillion could shift client money quickly into a cheaper fund because the exposure is the same but the cost is lower.
  • Bloomberg analysts say an early April launch is possible pending approval, and they expect the cut-rate fee to intensify competition across the roughly $83 billion U.S. spot-Bitcoin ETF market.