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Morgan Stanley became the first major U.S. commercial bank to launch a spot Bitcoin ETF on Wednesday. Its MSBT product recorded inflows of $30.6 million in its first trading day, according to data from Farside Investors.
Despite MSBT’s initial inflows, Wednesday marked a second consecutive day of net outflows from spot Bitcoin ETFs. Funds shed $124.5 million on the day.
Even with the outflows, the products remained in positive territory for the week, supported by Monday’s $471 million one-day haul, the biggest since February.
MSBT’s expense ratio is 0.14%, making it the cheapest Bitcoin ETF in the category. It undercuts BlackRock’s IBIT by 11 basis points.
BlackRock’s IBIT charges 0.25% annually and holds $56 billion in assets. On Wednesday, IBIT drew in $40.4 million.
Bloomberg Intelligence analyst James Seyffart suggested MSBT could be a “loss leader,” describing the launch as a way to attract crypto investors—potentially including “crypto millionaires”—into Morgan Stanley’s wealth management platform.
In a tweet, Seyffart’s colleague Eric Balchunas called MSBT’s debut arguably the biggest Bitcoin launch since the products began, and projected first-year assets under management of $5 billion.
Earlier this week, Balchunas told Decrypt that Morgan Stanley’s offering is unlikely to displace BlackRock as the category leader, but he said it should perform well, citing Morgan Stanley’s “captive audience” and its network of advisors.
Bitcoin was trading at $71,260, down 0.6% on the day and up 6.6% on the week, according to CoinGecko data.
On the prediction market Myriad, owned by Decrypt’s parent company Dastan, users were evenly split on Bitcoin’s next move, with an even chance of reaching $84,000 or $55,000.
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