New York, April 13, 2026, 10:10 EDT
Morgan Stanley, only days removed from rolling out MSBT, is signaling it has bigger crypto ambitions than just bitcoin. The bank says it’s considering tokenized money-market funds—blockchain-powered digital versions of traditional cash-like funds—and digital-asset tax tools as it expands its crypto footprint. For one of Wall Street’s heavyweight wealth managers, it’s a sign there’s more in the pipeline than a fresh ticker symbol.
It’s a notable move: Morgan Stanley Investment Management’s MSBT, trading on NYSE Arca, comes in with a 0.14% annual sponsor fee—the lowest among U.S. bitcoin ETPs. That also marks the debut of a U.S. bank-affiliated asset manager in the crypto ETP space. Pulling in $30.6 million on April 8, another $14.9 million April 9, and $16.3 million April 10, the fund saw a three-day total of roughly $61.8 million, according to Farside Investors.
Amy Oldenburg, who leads digital-asset strategy at Morgan Stanley, told Decrypt the firm isn’t limiting itself to just Bitcoin. She called a tokenized money-market fund “definitely a path forward.” Oldenburg also pointed to potential tax-loss harvesting for digital assets through Morgan Stanley’s Parametric unit—selling losing positions to help offset gains. Decrypt
Morgan Stanley has built more than just one bitcoin product behind the scenes. SEC filings dated Jan. 6 show the bank put in registration statements for trusts tracking Bitcoin, Ethereum, and Solana. Back then, Reuters noted this was the first time a major U.S. bank had taken such a step.
It’s a pitched battle over fees. According to Farside’s table, BlackRock’s IBIT and Fidelity’s FBTC each stick to a 0.25% fee. Morgan Stanley, boasting a network of over 16,000 financial advisors, brings a ready-made sales force that Bloomberg ETF analyst Eric Balchunas calls a “captive audience.” Farside
Trading started off busy. Fortune put first-half-day volume for MSBT north of $25 million, while Balchunas slotted the ETF launch among the top 1%. The broader mood wasn’t hurting, either—CoinShares tracked $1.03 billion moving into digital-asset investment products last week, with $790 million of that landing in bitcoin funds.
Coinbase and BNY will handle digital-asset custody for MSBT, according to Morgan Stanley. BNY gets extra duties as administrator and transfer agent. Investors, the bank notes on its product page, can get exchange-listed exposure—no direct token ownership involved. Holdings are pegged to a CoinDesk bitcoin benchmark.
Still, it’s a messy wager. Morgan Stanley points out MSBT isn’t registered under the Investment Company Act of 1940. The product might trade away from its net asset value—either at a premium or a discount. Investors also face the usual bitcoin swings, plus extra regulatory and custody risks that could wipe out most or all of their money.
Another issue lingers: just how many banks will actually follow suit? CoinShares senior research associate Luke Nolan, speaking to Fortune, said that firms known for their tough stance against crypto probably won’t rush in, even though the downside of being the first mover is mostly off the table now.
Morgan Stanley is sketching out a broader crypto push: the firm’s already rolled out a low-fee, in-house bitcoin product, is filing for ether and solana offerings, and is tinkering with on-chain cash funds and tax wrappers. The real challenge comes next—can the strategy translate a big debut into consistent adviser-driven inflows?
Related articles: NYSE:MS
