Morgan Stanley is launching a Bitcoin ETF with a fee lower than its major competitors.
In a filing with the U.S. Securities and Exchange Commission (SEC) on Friday, the bank set the cost for its upcoming spot Bitcoin ETF at just 14 basis points (0.14%).
This move could start a new price war among the biggest financial companies in the market.
An ETF is a tool that pools money from many investors to track the performance of an asset, like Bitcoin. It trades on a traditional stock exchange just like a regular stock.
A crypto ETF specifically allows people to invest in Bitcoin without having to buy or hold the digital coins themselves.
Related: New crypto draft skips Bitcoin tax exemption
Cutting the costs for investors
The new Bitcoin ETF will use the ticker name MSBT. By charging only 0.14%, Morgan Stanley is undercutting the cheapest options available today.
To manage the new fund, Morgan Stanley has partnered with major industry leaders. Coinbase Inc. will serve as the prime broker and custodian of the ETF’s Bitcoin holdings, while BNY Mellon will handle the fund’s cash and administrative functions.
Currently, Grayscale’s Bitcoin Mini Trust ETF is the lowest at 0.15%, while larger funds like BlackRock’s iShares Bitcoin Trust (IBIT) charge 0.25%.
While these percentages seem small, they can move massive amounts of money. Since most Bitcoin ETFs provide the exact same exposure to Bitcoin’s price, investors and advisors usually choose the one with the lowest annual fee.
Financial advisors can move their clients’ money into a cheaper fund with just one trade to save on costs.
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A major bank joins the market
Morgan Stanley has a massive advantage because of its size.
Its wealth management arm manages trillions of dollars for clients and has one of the largest networks of financial advisors in the world.
Even if these advisors move only a small portion of their clients’ money, it could shift billions of dollars away from higher-fee competitors.
The launch of the fund appears to be coming very soon. Just a few days ago, Eric Balchunas, a senior analyst at Bloomberg, reported on X that the fund has secured a listing on the New York Stock Exchange (NYSE).
The NYSE confirmed it has issued a listing notice for MSBT, which is a key step before trading begins. If approved by the SEC, this would be the first spot Bitcoin ETF issued directly by a major U.S. bank.
Related: 91-year-old Wall Street giant inches closer to first Bitcoin ETF
This story was originally published by TheStreet on Mar 27, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.