Spot bitcoin exchange-traded trust by Morgan Stanley charging a 0.14% sponsor fee
Morgan Stanley Bitcoin Trust (MSBT) is an exchange-traded product designed to track the spot price of bitcoin. Listed on NYSE Arca, it launched in April 2026 as the first proprietary spot bitcoin fund offered by a major Wall Street bank. MSBT charges an annual delegated sponsor fee of 0.14%, which ranked as the lowest fee among major US spot bitcoin funds at launch.
The trust is sponsored by Morgan Stanley Investment Management Inc., a subsidiary of New York-based financial services firm Morgan Stanley. Foreside Fund Services is the marketing agent for the vehicle. Unlike mutual funds or standard ETFs, MSBT is an exchange-traded product not registered under the Investment Company Act of 1940.
MSBT tracks the performance of bitcoin using the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate, which aggregates trade execution data across major spot cryptocurrency exchanges. To safekeep the underlying assets, the fund employs a dual-custody structure splitting responsibilities between The Bank of New York Mellon and Coinbase Custody Trust Company. Bitcoin holdings sit in segregated cold-storage accounts, and fund shares trade throughout standard US exchange hours under the ticker MSBT.
The trust operates with a unitary annual sponsor fee of 0.14% (14 basis points). This undercuts competing funds such as BlackRock's iShares Bitcoin Trust (IBIT) at 0.25% and Grayscale Bitcoin Mini Trust (BTC) at 0.15%. Investors access MSBT directly through standard US brokerage, advisory, and retirement accounts. Redemptions and purchases take place in shares rather than in physical cryptocurrency; investors cannot withdraw the underlying bitcoin.
MSBT debuted on April 8, 2026, recording approximately $34 million in volume during its first trading day. By late September 2026, the trust held 10,436 BTC, and total share class assets reached approximately $873 million in October 2026.
MSBT exposes holders directly to bitcoin price volatility. Because it is not a 1940 Act fund, it lacks certain regulatory safeguards present in conventional mutual funds. As an exchange-traded trust, MSBT shares can trade at a premium or discount to their net asset value. Investors face third-party custodian concentration risks with BNY Mellon and Coinbase Custody, as well as ongoing regulatory uncertainties affecting digital assets in the United States.
Morgan Stanley Bitcoin Trust offers low-cost spot exposure backed by institutional custodians, but lacks direct coin redemptions and operates outside the protections of the Investment Company Act of 1940.
Morgan Stanley Bitcoin Trust (MSBT) is an exchange-traded product sponsored by Morgan Stanley Investment Management Inc. that tracks the spot price of bitcoin. Listed on NYSE Arca on April 8, 2026, MSBT represents the first spot bitcoin fund brought to market by a major Wall Street investment bank. Its central advantage is an annual delegated sponsor fee of 0.14%, which undercuts primary market competitors such as Grayscale Bitcoin Mini Trust at 0.15% and BlackRock's iShares Bitcoin Trust at 0.25%.
The trust prices its portfolio daily against the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate, using an aggregated trade volume model from major spot exchanges. Custody is split between The Bank of New York Mellon and Coinbase Custody Trust Company, who hold the underlying coins in segregated digital wallets. By late September 2026, the trust held 10,436 BTC, with share class assets reaching $873M by October 2026 after generating $34M in first-day trading volume.
The fund carries several trade-offs:
The product suits wealth management clients and long-term individual investors seeking passive, fee-efficient exposure to bitcoin within taxable brokerage accounts or tax-advantaged retirement vehicles. It does not suit self-custody advocates, crypto natives seeking decentralized utility, or investors requiring staking yields or options liquidity.
| Ticker | MSBT |
|---|---|
| Issuer | Morgan Stanley Investment Management |
| Holds | Bitcoin · unverified |
| Structure | ETP / ETN · unverified |
| Expense ratio | 0.14% · unverified |
| Assets under management | $873M (October 2026) · unverified |
| Listed on | NYSE Arca · unverified |
| Launch date | 2026-04-08 · unverified |
| Custodian | Coinbase Custody Trust Company, The Bank of New York Mellon · unverified |
| Stakes its holdings | No · unverified |
| Market | United States · unverified |
Not disclosed by the provider: Fee waiver, Options available.
Data from the provider's website and public sources. Fees and availability change; confirm on the official site before you sign up.
Charges an annual unitary delegated sponsor fee of 0.14%, deductible directly from trust assets.
Safekeeps underlying bitcoin holdings in segregated storage via The Bank of New York Mellon and Coinbase Custody Trust Company.
Measures performance daily using the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate aggregated from spot volume.
Trades under the ticker MSBT throughout standard US equity market hours.
Accessible directly through taxable retail brokerage accounts and tax-advantaged US retirement accounts.
Summarizes the fund's profile, investment rationale, and structural objectives for accessing bitcoin price exposure through an exchange-traded format.
Displays the daily net asset value, market price history, sponsor fees, and tracking metrics between market price and net asset value.
Reports total historical returns, 10k growth performance, and regular regulatory tax distribution schedules.
Outlines regulatory classifications, portfolio turnover, risk ratings, and fundamental asset details.
Shows the fund's allocation, consisting entirely of underlying spot bitcoin holdings and cash equivalents.
Provides official product literature, statutory prospectuses, regulatory reports, and operational investor guides.
There are no relevant user discussions or reviews regarding the Morgan Stanley Bitcoin Trust (MSBT). Available posts focus entirely on unrelated macro reports, corporate matters, and general brokerage services.
Based on 11 Reddit posts and comments from the last 12 months, checked Oct 26, 2026. These are posts by users on other sites, not reviews submitted on CryptoReview.
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The trust is managed by Morgan Stanley Investment Management Inc., the asset management division of Morgan Stanley, which launched the product on NYSE Arca on April 8, 2026.
MSBT charges an annual unitary delegated sponsor fee of 0.14%. This expense ratio is deducted directly from the fund's net asset value.
Custody is split between The Bank of New York Mellon and Coinbase Custody Trust Company, LLC, which maintain the trust's bitcoin in segregated custody accounts.
No, investors cannot redeem shares for physical bitcoin. Shares are bought and sold in U.S. dollars through brokerage and retirement accounts.
No, MSBT is an exchange-traded product that is not registered under the Investment Company Act of 1940. It is not subject to the same regulatory requirements as traditional 1940 Act mutual funds or ETFs.
Recent public posts from @MorganStanley, shown as published. Not reviewed or endorsed by CryptoReview.
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