Morgan Stanley's bitcoin ETF opens today, giving BlackRock’s $55 billion IBIT fund its toughest rival yet

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Morgan Stanley's bitcoin ETF opens today, giving BlackRock’s $55 billion IBIT fund its toughest rival yet While BlackRock’s spot bitcoin ETF currently reigns as the liquidity king of crypto, Morgan Stanley’s MSBT will leverage a market-low 0.14% fee and $7 trillion wealth management engine to possibly challenge that dominance. By Helene Braun | Edited by Stephen Alpher Updated Apr 8, 2026, 1:19 p.m. Published Apr 8, 2026, 1:15 p.m. Make preferred on (Gabriel Pevide/Getty Images for Morgan Stanley) What to know : Morgan Stanley has launched the MSBT spot bitcoin ETF with a 0.14% fee, undercutting BlackRock’s dominant IBIT fund, which charges 0.25%. While IBIT remains the most liquid bitcoin ETF with about $55 billion in assets and leading trading and options volume, Morgan Stanley’s vast wealth management network could steer new flows toward MSBT. The new fund accelerates a shift in the market toward fee competition and distribution power, posing the first sustained challenge to IBIT’s grip on investor inflows. BlackRock’s most successful exchange-traded fund (ETF) is facing its clearest challenge yet, as Morgan Stanley rolls out a cheaper rival with direct access to trillions in client capital. Morgan Stanley’s ETF, trading under MSBT and tracking the CoinDesk Bitcoin Benchmark 4 PM NY Settlement Rate, began trading Tuesday with a 0.14% expense ratio, below the iShares Bitcoin Trust’s (IBIT) 0.25%. The difference is narrow but lands in a market where price is one of the few levers investors can pull. Each spot bitcoin ETF holds bitcoin BTC $ 72,151.23 and tracks its price. That leaves cost, liquidity and access as the main points of difference. IBIT has led on scale and trading activity since launch, becoming the most liquid vehicle for both shares and options tied to bitcoin ETFs with roughly $55 billion in assets-under-management. That liquidity gives IBIT an edge that may be hard to replicate. “The launch will impact things but it will be interesting to see if it can actually siphon assets from other funds,” said James Seyffart, ETF analyst at Bloomberg Intelligence. “IBIT is the most liquid ETF for trading and in the options market and it’s unlikely MSBT will ever compete with that. At least not anytime remotely soon.” Still, Morgan Stanley’s entry changes the competitive balance. The bank can tap its vast wealth management network, where advisors can shift client allocations with a single trade. In practice, that means new demand may be directed toward MSBT rather than existing funds like IBIT. “Distribution is king in the ETF space, and Morgan Stanley has that in spades with its army of wealth managers,” said Nate Geraci, president of the ETF Store. “Combined with MSBT being the lowest-cost spot bitcoin ETF on the market, that’s a strong recipe for success.” Geraci added that MSBT, which undercuts IBIT by 11 basis points, has a gap large enough to draw attention from both investors and BlackRock. IBIT’s position reflects how the market has evolved. Early inflows favored large, trusted issuers with deep liquidity. Over time, as more trusted names have entered the market, fee sensitivity has grown. Morgan Stanley’s launch may speed up that shift, even if IBIT retains its lead in trading volume. The result is a more defined split in the market. IBIT offers depth and liquidity for active traders. Newer entrants like MSBT compete on cost and distribution. Morgan Stanley’s wealth management arm oversees trillions in client assets and has one of the largest adviser networks in the industry, giving the bank a steep advantage. As more capital moves through financial advisors rather than direct trading, that channel may carry increasing weight. For now, IBIT remains the benchmark. But with fees falling and new entrants targeting its position, its grip on flows may face its first sustained test. BlackRock More For You Encryption Supremacy: Zcash and Privacy in the Age of Scale By CoinDesk Research Mar 31, 2026 Commissioned by GenZcash Most crypto privacy models weaken as blockchain data grows. Encryption-based models like Zcash strengthen. CoinDesk Research maps the five privacy approaches and examines the widening gap. Why it matters : As blockchain adoption scales, the metadata available to machine learning models scales with it. Obfuscation-based privacy approaches are structurally degrading as a result. This report provides a comprehensive comparison of all five major crypto privacy architectures and a framework for evaluating which models remain durable as AI capabilities improve. View Full Report More For You Iran eyes crypto toll for oil tanker transits through Strait of Hormuz, according to FT By Omkar Godbole | Edited by Stephen Alpher 5 minutes ago Iran plans to collect cryptocurrency and other digital payments as transit fees from fully loaded oil tankers passing through the Strait of Hormuz, said the report. What to know : Iran plans to collect cryptocurrency and other digital payments as transit fees from fully loaded oil tankers passing through the Strait of Hormuz during a two-week cease-fire with the United States, according to an FT report. Under the proposed system, tankers must email cargo details to Iranian authorities, who will... Read full story Latest Crypto News Iran eyes crypto toll for oil tanker transits through Strait of Hormuz, according to FT 5 minutes ago CoinDesk 20 performance update: Internet Computer (ICP) rises 12.1% 5 minutes ago Bitcoin’s quantum threat is distant, but migration clock is ticking, says Adam Back Says 11 minutes ago Morgan Stanley's bitcoin ETF opens today, giving BlackRock’s $55 billion IBIT fund its toughest rival yet 34 minutes ago Bitcoin buyers gobbled up nearly 850,000 BTC between $60,000 and $70,000 1 hour ago Ceasefire lifts bitcoin, but animal spirits may not return just yet 2 hours ago Top Stories Crypto-related stocks higher across the board after the ceasefire news 3 hours ago Attacking bitcoin mining with a quantum computer would require the energy of a star, academics say 7 hours ago CZ says SBF asked for billions 'like a Bologna sandwich' as FTX collapsed 13 hours ago Stablecoin issuers get closer to U.S. federal rules with FDIC's new proposal 18 hours ago Bitcoin vaults past $72,000 as U.S. stock futures surge on a two‑week U.S.–Iran ceasefire 13 hours ago ‘Don’t waste time with crypto': Here is what Solana Foundation's cryptic message really means 20 hours ago In this article BTC BTC $ 72,151.23 ◢ 5.73 %