Morgan Stanley’s MSBT Posts 30 Consecutive Days Without Outflows

Morgan Stanley’s MSBT logged 30 consecutive trading days without an outflow, drawing about $194 million and pushing the ETF’s assets above $240 million since it began trading April 8 on NYSE Arca.

SoSoValue data show MSBT had 17 inflow days and five flat sessions through May 8. The fund launched with $30.6 million in deposits and about $34 million in trading volume on its first day. Net inflows reached roughly $194 million by May 8, and the fund’s holdings approached 2,920 bitcoin. MSBT charges a 0.14% fee.

Other large spot bitcoin ETFs from BlackRock, Fidelity and ARK Invest posted net outflows over the same period while bitcoin traded mainly between the mid-$70,000s and low-$80,000s.

Morgan Stanley’s distribution network includes about 16,000 financial advisors who oversee more than $9 trillion in client assets. The firm’s internal adviser channel and MSBT’s lower fee are factual characteristics that distinguish the product from some competitors.

Eric Balchunas, a senior ETF analyst, wrote on social media: ‘MSBT’s 14 basis point fee could entice others to cut, or new entrants to come in even lower.’ He added that fee competition tends to be painful for issuers but beneficial for investors.

BlackRock’s IBIT recorded 71 inflow days after its 2024 debut and built a substantially larger asset base. MSBT’s asset base remains modest compared with the largest spot bitcoin ETFs.