Morgan Stanley’s MSBT Bitcoin ETF Debuts with $34M in First-Day Trading Volume

MSBT launched at 0.14%, below BlackRock’s IBIT at 0.25% and Grayscale’s Bitcoin Mini Trust at 0.15%, making it the lowest-cost spot BTC ETF.

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.

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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.