Morgan Stanley Bitcoin ETF Fees 44% Lower Than IBIT, Potential Spot BTC Flow Shift

Morgan Stanley’s proposed Spot Bitcoin ETF (MSBT) may launch in about two weeks and aims to spark a “fee war.” A refiled S-1 reportedly sets MSBT’s management fee at 0.14%, which is 44% cheaper than BlackRock’s iShares Bitcoin Trust (IBIT) at 0.25%. It would also undercut other low-fee rivals (e.g., Grayscale Mini at 0.15%). Analyst Eric Balchunas said the cheaper fee gives MSBT a “shot at getting outside assets,” calling it a “semi-shock,” because MSBT could attract flows away from competitors and new distribution channels. Strategy CEO Phong Le similarly expects “monster” flows, noting Morgan Stanley’s large advisor network as a potential driver. Market context: after the news, IBIT reportedly led Friday’s outflows with $201M in redemptions. Total ETF outflows reached about $225M on March 27, dragging BTC toward ~$65K and wiping most March gains. Still, broader data suggests selling pressure eased in late Q1 2026: a 90-day average shows redemptions falling roughly 92% from around $72M in January to about $6M by late March. Traders may watch whether Spot BTC ETF net flows flip positive in Q2 2026, which could support a bullish breakout attempt from the $60K–$75K BTC range.