Morgan Stanley’s Bitcoin ETF Rapidly Gains Ground on Competitors

Morgan Stanley's newly launched spot Bitcoin ETF (MSBT) has demonstrated rapid investor adoption, overtaking the WisdomTree Bitcoin Fund (WBTC) in total net inflows just six trading days after its debut. The fund recorded $19.3 million in inflows on Wednesday, bringing its total net inflow to $103 million. Launched on April 8, the MSBT fund is utilizing a competitive fee structure to attract capital in a crowded market. With a market-low fee of 0.14%, Morgan Stanley has undercut the Grayscale Bitcoin Mini Trust ETF by one base point, signaling a price war among institutional providers to capture market share. Despite the quick start, MSBT remains a distant challenger to the industry giants. BlackRock’s iShares Bitcoin Trust (IBIT) continues to dominate the landscape with $64.3 billion in net inflows, while the Fidelity Wise Origin Bitcoin Fund follows with $10.9 billion. However, MSBT is now within striking distance of other competitors, including the Franklin Bitcoin ETF ($375 million), Valkyrie Bitcoin ETF ($326 million), and Invesco Galaxy Bitcoin ETF ($245 million). The expansion of the Bitcoin ETF space continues as Goldman Sachs has recently filed with the SEC to launch its own Bitcoin-linked product. This growth occurs against a backdrop of broader ETF instability; data indicates that the average lifespan of ETFs has declined to 3.5 years in 2025, with over 40 ETFs liquidated in the first two months of 2026.