Morgan Stanley has set the fee for its new spot Bitcoin ETF at a paltry 0.14%, undercutting every competitor in the market. If approved, MSBT would become the first spot Bitcoin ETF issued by a major US bank and the first new entrant since the initial wave of launches in January 2024.
The pricing is aggressive. It beats Grayscale’s 0.15% and comes in well below BlackRock’s IBIT at 0.25%, positioning Morgan Stanley to compete at scale from day one.
If Morgan Stanley captures momentum similar to that of the IBIT launch, the impact could be massive, potentially pulling hundreds of thousands of bitcoin off the market over the next year.
Other top stories from the week include:
Bitcoin-backed mortgages are going mainstream.
Metaplanet is getting into the Bitcoin cashback credit card game.
MARA sells the bottom and falls out of the #2-ranked BTCTC position.
Latest News
Adoption
Coinbase, Fannie Mae, and Better Home, launch Bitcoin-backed mortgages, allowing borrowers to use BTC for down payments without triggering taxable sales, with no margin calls or collateral top-ups.
ProductionReady launches a nonprofit to fund a conservative Bitcoin client, aiming to reduce reliance on Core, support multiple implementations, while strengthening decentralization and security.
Strategy launches a Bitcoin Security Program and opens hiring for a Director of Bitcoin Security to coordinate with experts on network resilience and trust.
Regulation
Hong Kong updates its National Security Law, making refusal to provide passwords or assist with device decryption a criminal offense punishable by up to 1 year in jail and a HKD 100K fine.
Bitcoin Policy Institute, Block, and River brief Congress on BTC tax reform, but new draft law excludes Bitcoin from de minimis relief and keeps mining double taxation, drawing backlash over policy approach.
Swan Bitcoin seeks SDNY subpoena of Cantor Fitzgerald and Howard Lutnick, alleging Tether-linked conspiracy, mass resignations, and data exfiltration tied to takeover of its 2040 Energy mining venture.
Markets
Morgan Stanley files for spot Bitcoin ETF (MSBT) with 14 bps fee, undercutting rivals; first major US bank issuance could spark fee war and unlock advisor-driven flows across its $9T network.
Lombard partners with Bitwise to allow institutions to earn yield and borrow against their Bitcoin without moving assets out of custody.
Tether hires KPMG for first full audit of $184B+ USDT reserves, going beyond attestations toward institutional transparency, aiming to verify backing, liquidity, and risk controls across its global operations
Treasury
MetaPlanet to launch shareholder-only credit card with 1.6% Bitcoin cashback, as part of broader strategy spanning treasury growth, investing, and consumer products, launching Summer 2026
Bitcoin purchases from treasury companies outside Strategy have dropped to just 2% of March totals, as MSTR makes its largest purchases in over a year.
GameStop pledges 4,709 BTC to Coinbase Credit for covered-call strategy, generating income but capping upside at $105K–$110K; effectively transferring control of collateralized bitcoin to Coinbase.
Mining
MARA sells 15,133 BTC for $1.1B to retire debt at a discount, realizing ~$236M loss; move cuts liabilities, funds AI pivot, and sees market absorb selling without major Bitcoin price impact.
Bitcoin sees a rare 2-block reorg after Foundry mines seven straight blocks and wins a race against AntPool and ViaBTC at heights 941881–941882, raising concerns of miner centralization.
CoinShares reports tightening conditions in Bitcoin mining, with 15–20% of miners now unprofitable as post-halving hashprice fell to around $28 per PH/s per day in February 2026.
Politics
Irish police access 500 BTC from previously locked 2019 seizure, with Europol support, raising prospects of unlocking remaining 6,000 BTC in one of Europe’s largest bitcoin seizures and recoveries.
David Sacks steps down as AI and crypto czar for Donald Trump after 130-day limit, shifting to co-chair of President’s Council of Advisers on Science & Technology to expand tech policy role.
EU Chat control is defeated for the third time as the amendment to stop messaging apps from scanning private messages and break end to end encryption passed by one vote.
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Bam’s 2 Sats
Boomer Money Has Entered The Chat
Morgan Stanley Makes Its Move
For years, Bitcoiners have said “institutions are coming” and that a “then suddenly” moment would follow. Until now, it’s mostly been a gradual transition as Bitcoin has evolved from fringe internet money into an institutional asset.
First came Bitcoin treasury companies, a wave sparked by Strategy in 2020. Then came ETFs, which gained real traction after their approval in 2024.
Last week, Morgan Stanley entered the arena, becoming the first major US bank to file for its own spot Bitcoin ETF, MSBT. With 16,000 financial advisors and roughly $9T in assets under management, this is no small test.
And the interesting part? The fee was set at only 0.14%.
by Eric Balchunas
That’s significantly lower than BlackRock’s IBIT fee of 0.25%. IBIT became the fastest ETF ever to reach $80B, though it now sits closer to $50B. Morgan Stanley is coming straight for its crown, and they're doing it by undercutting on price.
Morgan Stanley has previously suggested a conservative 2% Bitcoin allocation. Apply that across its ~$9T AUM, and you’re looking at roughly $160B in potential flows into its new ETF, MSBT.
That's three times the size of BlackRock's IBIT.
Global Investment Committee – Morgan Stanley 2025.
Of course, this won’t happen overnight. Advisors move slowly. But the groundwork is being laid, and with the lowest fees of any Bitcoin ETF, it gives advisors a strong case to pitch it as the best product in the space.
Unlike earlier ETFs, where much of the capital rotated out of Grayscale, Morgan Stanley appears positioned to attract fresh inflows. The ambition is clear: compete directly with BlackRock at the top.
For now, it’s still unclear whether Bitcoin has bottomed. But new waves of capital are already being set in motion. That may be one of the most bullish signals in an otherwise brutal stretch of price action.
- Bam
