Morgan Stanley has launched its own spot Bitcoin ETF, becoming the first major U.S. commercial bank to issue one directly. The fund, trading under the ticker MSBT on NYSE Arca, debuted with about $34 million in day-one inflows and processed over 1.6 million shares. Analysts estimate first-day trading volume could approach $50 million, placing it among the strongest ETF launches.

MSBT charges a 0.14% management fee — the lowest among U.S. spot Bitcoin ETFs — undercutting BlackRock’s iShares Bitcoin Trust, which charges 0.25%. The fund holds physical Bitcoin, uses Coinbase Custody for asset storage, and relies on BNY Mellon for administration. Bloomberg ETF analyst Eric Balchunas projected the ETF could reach $5 billion in assets under management within its first year.

The launch adds competitive pressure to the growing spot Bitcoin ETF market, especially given Morgan Stanley’s massive advisor network overseeing trillions in client assets. Even small portfolio allocations across its platform could drive significant demand, making MSBT a potentially influential new player in institutional Bitcoin adoption.