E*Trade Rolls Out Crypto Trading With Lower Fees Than Coinbase and Robinhood

Key Highlights

• E*Trade introduces crypto trading with a 0.50% transaction fee structure
• Pricing beats standard rates from Coinbase, Robinhood, and Charles Schwab
• Full access to 8.6 million E*Trade users expected by end of 2025
• Morgan Stanley’s MSBT Bitcoin ETF has accumulated $92 million in net inflows
• Charles Schwab entered the market last month with 0.75% trading fees

Morgan Stanley has initiated a cryptocurrency trading test program through E*Trade, implementing a fee structure of 50 basis points (0.50%) for each transaction. Following a Bloomberg report on Tuesday, the financial institution verified these details with Cointelegraph.

This pricing strategy positions E*Trade below the typical retail charges found at competing platforms including Coinbase, Robinhood, and Charles Schwab. Schwab entered the cryptocurrency market in April with its “Schwab Crypto” offering, supporting spot Bitcoin and Ether transactions at 0.75% per trade.

While the E*Trade program operates in a restricted capacity currently, Morgan Stanley has announced plans to extend availability to its complete base of 8.6 million E*Trade customers before 2025 concludes.

The initiative arrives on the heels of Morgan Stanley’s spot Bitcoin ETF introduction, trading under the ticker MSBT on the New York Stock Exchange this past April. The investment product features a 0.14% management fee, positioning it among the most affordable options available.

MSBT ETF Shows Strong Early Performance

Data from Farside Investors reveals that the MSBT ETF has attracted $92 million in cumulative net inflows following its market debut. The fund’s inaugural trading session on NYSE Arca generated $30.6 million in investor capital.

Eric Balchunas, an ETF analyst at Bloomberg, characterized the launch as significant, highlighting Morgan Stanley’s massive $7 trillion asset management portfolio. He noted that the competitive fee structure could facilitate Bitcoin allocations by the firm’s financial advisors for their clients.

As the first major banking institution to launch a proprietary Bitcoin ETF, Morgan Stanley has established a notable market position. While VanEck’s HODL ETF maintains an advantage through its fee waiver program, MSBT remains highly competitive in terms of cost.

Traditional Finance Expands Cryptocurrency Footprint

Goldman Sachs submitted regulatory filings to the SEC in April for a Bitcoin Premium Income ETF. The proposed investment vehicle would generate returns through call option sales on Bitcoin exchange-traded products, utilizing an indirect exposure strategy rather than direct Bitcoin holdings.

BNY Mellon introduced a digital asset custody solution in October 2022, providing selected institutional clients with capabilities to store and transfer Bitcoin and Ether.

These developments demonstrate a broader trend of prominent financial institutions broadening their cryptocurrency service offerings to accommodate both retail and institutional clientele.

Morgan Stanley has adopted an aggressive competitive pricing model for its cryptocurrency trading platform, mirroring the low-cost strategy deployed with the MSBT ETF launch.

It should be recognized that specialized platforms such as Kraken Pro, Binance US, and certain Coinbase Advanced subscription levels do provide lower fee structures than Morgan Stanley’s 0.50% rate for qualifying traders.

The E*Trade cryptocurrency pilot program is currently operational on a limited scale, with comprehensive deployment to the entire client base anticipated before year-end.

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