- Morgan Stanley’s BTC ETF pulled in $193.6M in net inflows during its first month.
- The investment vehicle did not see any kind of outflows despite broader selloffs.
- US spot Bitcoin ETFs recorded over $622 million in weekly inflows as per SoSoValue.
Morgan Stanley entered the spot Bitcoin ETF market with one of the strongest launches in the sector so far. Its Morgan Stanley Bitcoin Trust (MSBT) recorded $193.6 million in net inflows between April 8 and May 7, according to SoSoValue data.
The fund closed its first month with $239.6 million in net assets and did not record a single day of net outflows. The ETF posted 17 days of positive inflows and five flat sessions.
Even during broader market sell-offs, the fund continued to attract capital. On May 7 and May 8, the wider US spot Bitcoin ETF market lost $277.5 million and $145.7 million, respectively. MSBT still recorded positive inflows during that stretch.
The launch also marked the first spot Bitcoin ETF issued by a major US bank.
Low Fees and Brand Strength Drive Early Demand
MSBT launched with a 0.14% sponsor fee, the lowest among all US spot Bitcoin ETFs. That undercuts BlackRock’s IBIT and Fidelity’s FBTC, both charging 0.25%. Grayscale’s Bitcoin Mini Trust charges 0.15%, while Bitwise charges 0.20%.
The fee difference looks small for retail traders, but at institutional size, it matters. A spread of 11 basis points equals roughly $1.1 million annually on a $1 billion allocation.
MSBT also benefited from Morgan Stanley’s existing reach in wealth management. The bank oversees roughly $9.3 trillion in client assets through a network of 16,000 financial advisors.
Related: NYSE Hosts Morgan Stanley to Mark MSBT Bitcoin ETF Milestone
Bitcoin ETF Flows Recover Across the Market
MSBT’s launch came during a broader recovery in spot crypto ETF demand. US spot Bitcoin ETFs recorded more than $622 million in net inflows last week alone.
The strongest days came early in the week. Bitcoin ETFs attracted $532 million on Monday and $467 million on Tuesday. Wednesday added another $46 million as Bitcoin briefly climbed near $83,000.
Flows reversed later in the week as price momentum cooled. Funds recorded net outflows of $277 million on Thursday and $146 million on Friday. Even with the pullback, weekly inflows finished far above the prior week’s $154 million.
Total cumulative net inflows into US spot Bitcoin ETFs have now crossed $59 billion. The category currently manages over $106 billion in assets, equal to roughly 6.67% of Bitcoin’s total market capitalization.
MSBT also outperformed some older competitors during volatile sessions. On May 7, the fund posted $5.7 million in inflows while BlackRock’s IBIT lost $27.2 million, Fidelity’s FBTC lost $97.6 million, and ARKB saw $26.6 million in outflows.
Related: Morgan Stanley Launches Stablecoin Reserves Portfolio for Issuers
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Source: https://coinedition.com/morgan-stanley-bitcoin-etf-nears-200-million-in-first-month-with-zero-outflow-days/
