Morgan Stanley takes a week to enter top ranks of Bitcoin ETFs
Morgan Stanley’s new spot Bitcoin ETF has already surpassed the WisdomTree Bitcoin Fund (WBTC) in total net inflows just a week after launch. The strong interest in the product is largely driven by its low fee.
According to Farside Investors, the Morgan Stanley Bitcoin Trust (MSBT) attracted an additional $19.3 million in inflows on Wednesday, bringing total net inflows to $103 million. This exceeds WisdomTree’s $86 million, which it has accumulated since launching in January 2024.
Interest from major asset managers in the Bitcoin ETF market continues to grow. On Tuesday, Goldman Sachs—previously critical of crypto—filed with the SEC to launch its own Bitcoin ETF.
The new fund and its rivals
Morgan Stanley’s spot ETF launched on April 8 with one of the lowest fees in the market at 0.14%, undercutting the Grayscale Bitcoin Mini Trust ETF (BTC) by one basis point. The fund is now one of 12 spot Bitcoin ETFs in the U.S. The segment leader remains BlackRock’s iShares Bitcoin Trust ETF (IBIT), with $64.3 billion in net inflows, followed by Fidelity’s fund at $10.9 billion.
Other competitors include ETFs from Bitwise, ARK 21Shares, and Grayscale. If momentum continues, Morgan Stanley’s product could soon overtake Invesco Galaxy’s BTCO, Valkyrie’s BRRR, and Franklin’s EZBC, which have recorded $245 million, $326 million, and $375 million in net inflows, respectively.
At the same time, the ETF market is becoming increasingly competitive. The average lifespan of ETFs has declined from 4.66 years in 2024 to around 3.5 years in 2025.
More than 40 ETFs were liquidated in the first two months of 2026, although none were major crypto funds. These products had an average lifespan of 21 months—half that of ETFs closed in 2025.
When and why Bitcoin ETFs emerged
The first Bitcoin-related ETFs were not spot products. For years, regulators—especially in the U.S.—hesitated to approve them due to concerns about market manipulation and lack of transparency. As a result, the first Bitcoin ETFs launched in 2021 were futures-based, tracking contracts rather than the asset itself.
The breakthrough came in January 2024, when the SEC approved the first spot Bitcoin ETFs in the U.S. This allowed major asset managers like BlackRock, Fidelity, and Grayscale to introduce products directly tied to Bitcoin’s price.
The main purpose of Bitcoin ETFs is to simplify access to the asset. Instead of buying and storing Bitcoin through exchanges and wallets, investors can gain exposure via traditional brokerage accounts. This is particularly important for institutional investors, who require regulated and familiar investment instruments.
Notably, on its first trading day, Morgan Stanley’s Bitcoin ETF recorded $34 million in trading volume.
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