Morgan Stanley has launched a Bitcoin exchange-traded product (ETP), drawing more than $100 million in inflows within six days, according to reports.
The product, MSBT, attracted demand before being made available through the firm’s financial advisors, indicating early activity was largely driven by self-directed investors.
The initial inflows suggest investors are allocating to Bitcoin exposure independently, without waiting for advisory guidance.
Amy Oldenburg said, “All of that was self-directed; it was not even available in advisory on the wealth platform,” highlighting that early demand came before advisor distribution.
Morgan Stanley recommends a 2% to 4% Bitcoin allocation for eligible portfolios. However, advisor adoption remains limited compared to client demand.
Oldenburg said this reflects an education gap rather than a lack of interest. Around 80% of ETP exposure on the platform is currently self-directed. The firm is expanding internal training to support advisors.
Morgan Stanley expects Bitcoin to eventually be included on bank balance sheets, though regulatory constraints remain.
Oldenburg said, “The regulatory environment has been more supportive,” but noted that Federal Reserve policies, Basel capital rules, and global compliance requirements still limit broader integration.
The firm is pursuing a digital trust charter from the Office of the Comptroller of the Currency (OCC) to enable crypto custody and spot trading.
The MSBT product currently uses Coinbase and BNY Mellon as custodians.
MSBT enters a market led by BlackRock’s iShares Bitcoin Trust (IBIT), which holds more than $61 billion in assets.
Morgan Stanley’s product carries a fee of 0.14%, compared with 0.25% for IBIT. However, IBIT continues to lead in trading volume and market liquidity.
Morgan Stanley’s network of about 16,000 advisors may support future inflows once the product is fully integrated into advisory channels.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Another week, another altcoin claiming it's "different this time." But here's the thing about NEAR…
BEAT price just went vertical. Again. The token surged from roughly $0.54 to $1.44 in…
BSB price isn’t just pumping anymore but it’s steamrolling through derivatives markets while traders scramble…
XRP price is starting to flash signs of hesitation at a level traders have been…
Ethereum is facing growing bearish pressure as both technical indicators and derivatives data begin signaling…
While the broader crypto market, including Bitcoin & Ethereum, remains under pressure, a few altcoins…
