Morgan Stanley has proposed a spot Bitcoin ETF with a fee rate as low as 0.14%, which would undercut every existing U.S. Bitcoin ETF if the SEC approves the fund.
Morgan Stanley has filed for a spot Bitcoin ETF with a proposed fee rate of 0.14%, which would make it the cheapest Bitcoin ETF in the United States if the Securities and Exchange Commission approves the fund.
Morgan Stanley Files for Spot Bitcoin ETF With 0.14% Fee
The Wall Street giant submitted an S-1 registration statement with the SEC for what would be its first proprietary spot Bitcoin exchange-traded fund. The proposed 0.14% expense ratio would undercut every existing competitor in the market by at least one basis point.
The filing marks a significant shift for Morgan Stanley. The firm has previously allowed select clients to buy shares of BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) through its brokerage platform, but it has never issued its own spot Bitcoin ETF.
The product is not yet live. SEC review of new Bitcoin ETF applications typically takes several months, and approval is not guaranteed. Investors cannot purchase shares of the proposed fund until that process concludes.
0.14% Would Beat Every Existing U.S. Bitcoin ETF on Cost
At 0.14%, the proposed fee would sit one basis point below the current cheapest option: the Grayscale Bitcoin Mini Trust (BTC), which charges 0.15%. Fee compression has been a recurring theme across Bitcoin markets as issuers compete for investor capital.
Here is how the proposed fee compares to the existing U.S. spot Bitcoin ETF landscape:
- Grayscale Bitcoin Mini Trust (BTC): 0.15% (current lowest)
- Franklin Bitcoin ETF (EZBC): 0.19%
- Bitwise Bitcoin ETF (BITB): 0.20%
- VanEck Bitcoin ETF (HODL): 0.20%
- ARK 21Shares Bitcoin ETF (ARKB): 0.21%
- BlackRock iShares Bitcoin Trust (IBIT): 0.25%
- Fidelity Wise Origin Bitcoin Fund (FBTC): 0.25%
Several issuers offered temporary fee waivers when spot Bitcoin ETFs first launched in January 2024, including BlackRock’s promotional rate of 0.12% on IBIT during its initial period. Those waivers have since expired, returning fees to their standard levels.
What Morgan Stanley’s Entry Means for Bitcoin ETF Competition
The SEC approved the first wave of 11 spot Bitcoin ETFs in January 2024, opening the door for additional issuers to file. Issuers have repeatedly cut fees to attract assets under management since then, and Morgan Stanley’s filing signals the price war is intensifying.
The distinction matters: Morgan Stanley entering as an ETF issuer is fundamentally different from its earlier role as a distributor bridging traditional finance and crypto markets. As an issuer, the firm would manage the fund directly and compete head-to-head with BlackRock, Fidelity, and Grayscale for investor capital.
Morgan Stanley manages roughly $7 trillion in client assets, much of it belonging to high-net-worth and institutional investors. That built-in distribution network could allow the fund to accumulate assets under management quickly if it launches with a cost advantage.
A competitive fee of 0.14% could also pressure existing issuers to respond with further cuts. The current fee gap between the cheapest and most expensive mainstream spot Bitcoin ETFs already spans more than 10 basis points, a spread that has driven volatile swings in Bitcoin ETF sentiment throughout 2026.
The SEC review timeline remains the key variable. Until the regulator acts on the filing, the proposed fund exists only on paper. Investors tracking Bitcoin ETF fee developments should watch for SEC comment periods and any amendments to the registration statement in the months ahead.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
