BlackRock Leads $358.1M Bitcoin ETF Inflows as Morgan Stanley Debuts MSBT

Key Point

Farside data shows the 12 U.S. spot Bitcoin ETFs took in $358.1 million on Thursday, with BlackRock's IBIT accounting for $269.3 million after two straight days of sector net outflows. Fidelity's FBTC added $53.3 million, while Bitwise, ARK 21Shares, Franklin Templeton, and VanEck also posted inflows. Morgan Stanley's newly launched Bitcoin Trust, MSBT, brought in $14.9 million on its second trading day after recording about $34 million in first-day trading volume and $30.6 million in net inflows. Amy Oldenburg said MSBT posted the best first day of trading for any Morgan Stanley ETF, and the fund charges a 14 basis point fee.

Why it matters: A new Bitcoin ETF from a major bank could widen regulated distribution and may intensify fee competition across the U.S. spot Bitcoin ETF market.

Market Sentiment

Cautiously Bullish, Flow-led, Re-risking.

Reason: U.S. spot Bitcoin ETFs recorded $358.1 million in net inflows on Thursday.

Similar Past Cases

In January 2024, the first U.S. spot Bitcoin ETFs began trading, and more than $4.6 billion of shares changed hands on the first day, showing how a new regulated Bitcoin ETF access point can pull in capital quickly. (Bloomberg) The difference is that January 2024 created the category, while Morgan Stanley is entering an established market where distribution and fees matter more than first-mover demand.

Ripple Effect

Morgan Stanley's launch could widen Bitcoin ETF distribution through its wealth platform, which may shift flows toward lower-fee products and pressure incumbent issuers on pricing. If MSBT keeps posting net inflows after the launch week, then competition for advisor-driven Bitcoin allocation may broaden beyond the current ETF leaders. Stronger competition inside the ETF group could also increase rotation between issuers rather than lift total sector demand immediately.

Opportunities & Risks

Opportunities: If MSBT continues to post net inflows after its launch week, then that is a potential signal that new bank distribution is expanding Bitcoin ETF demand rather than only rotating money between issuers. If BlackRock and Morgan Stanley both keep attracting fresh inflows, then adding exposure after flow confirmation may align better with institutional demand.

Risks: If MSBT inflows slow while total ETF flows stay flat, then the launch may be mostly issuer rotation and that can limit upside expectations for the category. If fee cuts spread across issuers, then weaker ETF operators could face margin pressure and that may intensify competition without lifting total demand.