Capital inflows into Morgan Stanley’s Bitcoin ETF exceeded $103 million
The new Bitcoin fund from Morgan Stanley has shown rapid growth, surpassing WisdomTree’s product in net capital inflows just 8 days after its market debut. According to a report by Farside Investors, investors allocated $19.3 million to the Morgan Stanley fund last Wednesday. As a result, total net inflows reached $103 million. By comparison, WisdomTree’s WBTC fund, which has been operating since January 2024, has attracted only $86 million over its entire lifetime.
This dynamic confirms the aggressive push by major banks to establish a foothold in the spot crypto ETF sector. This week, it was also revealed that banking giant Goldman Sachs submitted an official application to the Securities and Exchange Commission to register its own Bitcoin fund.
This is a very telling situation, as the organization has repeatedly criticized the digital asset space. The growing number of participants indicates strong demand for such instruments among institutional clients.
The success of Morgan Stanley’s ETF is largely tied to its pricing strategy. The product debuted on April 8 with a record-low fee of 0.14%, which is 1 basis point lower than the Grayscale Bitcoin Mini Trust. Currently, this ETF competes with 11 similar products. The segment leader remains BlackRock’s iShares fund with $64.3 billion in net inflows, followed by Fidelity with $10.9 billion.
If current growth rates continue, Morgan Stanley could soon surpass funds from Invesco Galaxy, Valkyrie, and Franklin, which have inflows of $245 million, $326 million, and $375 million respectively.
However, overall ETF sector data indicates a shortening of investor holding periods, which may suggest a rise in short-term trading strategies in the market.
See also: "Bitcoin ETFs saw $291M outflows while Ethereum gained $9M"
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