• Morgan Stanley has filed an amendment seeking to offer the lowest fees (0.14%) for its proposed spot Bitcoin ETFs.

• Should it garner SEC approval, the investment product would spark intensified competition in the ~$92B spot BTC ETF market.

  

• Banks are increasingly adopting cryptocurrencies despite unresolved conflict with stablecoin issuers.

  

Morgan Stanley, one of the leading banks in the US with $6.2 trillion in client assets and 16,000 financial advisors, has set a 0.14% management fee for its spot Bitcoin ETF (MSBT). 

The announcement is part of its updated S-1 registration statement filed with the US Securities and Exchange Commission (SEC) for said Bitcoin ETF.

Should the agency approve the filing, the bank’s fees would be the lowest and most competitive in the $85 billion to $92 billion spot Bitcoin ETF market. By comparison, Grayscale Bitcoin Mini Trust’s fee is 0.15%, while BlackRock’s iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund are each 0.25%.

Morgan Stanley’s application for a spot Bitcoin ETF

Previously a cautious observer of cryptocurrencies, Morgan Stanley filed its initial applications for a spot Bitcoin ETF and a spot Solana ETF on January 6, 2026. Shortly afterwards, it filed for a staked Ether ETF and then appointed Amy Oldenburg, one of its time-honored executives, as head of its digital asset strategy.

On March 17, the bank filed an amended S-1, specifying a $1 million seed investment and the ticker MSBT. The company also noted that Coinbase and BNY Mellon were the proposed custodians of the product.?

A week later, the New York Stock Exchange (NYSE) issued an official listing for the product, citing its launch as “imminent.”

In addition to the spot Bitcoin ETF, Morgan Stanley applied for a national trust banking charter in mid-February to provide crypto custody, trading, and staking services.

The bank now recommends that its clients allocate 2%-4% of their investment portfolios to cryptocurrencies, including those in individual retirement accounts (IRAs) and 401(k) plans.

Despite disputes with stablecoin issuers over yield farming, banks are increasing their exposure to blockchain and cryptocurrencies through products such as ETFs, tokenized fiat deposits, and tokenized real-world assets. JPMorgan Chase, Standard Chartered, and Goldman Sachs are among the banks leading this cause while helping to legitimize cryptocurrencies in the global financial space.