Morgan Stanley is making waves in the crypto investment space with its proposed spot Bitcoin ETF, featuring a remarkably low fee of just 0.14%. If approved, this would position the firm as the cheapest provider in the US market, undercutting major competitors and potentially triggering a new price war among ETF issuers.
A New Benchmark for Bitcoin ETF Fees
According to its latest S-1 filing, Morgan Stanley’s proposed ETF fee is one basis point lower than the Grayscale Bitcoin Mini Trust ETF and significantly below the iShares Bitcoin Trust ETF. This aggressive pricing strategy could put immediate pressure on other issuers to lower their fees or risk losing investor interest in an already competitive $83 billion market.
Bloomberg ETF analyst James Seyffart described the move as a strong signal that Morgan Stanley is serious about gaining market share, predicting a possible launch as early as April. Meanwhile, fellow analyst Eric Balchunas noted that such low fees would make it easy for the firm’s 16,000 financial advisors—who collectively manage $6.2 trillion in assets—to recommend the product without hesitation.
If approved, the ETF would mark a significant milestone, making Morgan Stanley the first major bank to issue a spot Bitcoin ETF. This could dramatically expand access to Bitcoin exposure, especially among high-net-worth clients.
Morgan Stanley Expands Its Crypto Strategy
Beyond Bitcoin, Morgan Stanley is actively building a broader crypto investment ecosystem. The firm has also filed for ETFs tied to Solana and Ethereum, including a staked Ether ETF offering. This reflects a notable shift from its earlier cautious stance on digital assets.
To support its crypto initiatives, Morgan Stanley has partnered with Coinbase and Bank of New York Mellon as custodians for its proposed Bitcoin ETF. Additionally, the firm has applied for a national trust banking charter, aiming to provide services such as digital asset custody, trading, and staking.
The company has also strengthened its leadership in this area by appointing Amy Oldenburg to head its digital asset division.
Morgan Stanley’s evolving approach signals growing institutional confidence in crypto. The firm has previously recommended allocating 2% to 4% of investment portfolios to digital assets and now allows its advisors to suggest crypto funds within retirement accounts such as IRAs and 401(k)s.
