MSBT is coming! Morgan Stanley directly challenges IBIT, potentially reshaping the Bitcoin ETF landscape.

Gate News reports that the New York Stock Exchange has confirmed the listing notification for Morgan Stanley’s spot Bitcoin ETF (MSBT), indicating that the product may soon be launched. ETF analyst Eric Balchunas said this signal typically suggests the product is entering the countdown to launch. If approved, MSBT will become the first spot Bitcoin ETF directly issued by a major U.S. bank.

Morgan Stanley previously expressed market participation intentions by holding existing Bitcoin ETFs. The latest disclosure shows it holds over $729 million, with about $667 million invested in BlackRock’s IBIT. This role is now shifting from an investor to an issuer, primarily driven by fee structure optimization. By creating its own product, Morgan Stanley can directly earn management fees instead of relying on distribution commissions.

In terms of product structure, MSBT and IBIT are similar, both using cold storage custody and traditional banks for asset management. However, the key competitive point is the distribution system. Morgan Stanley has approximately 15,000 to 16,000 financial advisors who can directly access about $6.2 trillion in wealth management assets. This means that once advisors recommend MSBT internally, the fund transfer process will be more efficient and closed-loop.

In comparison, although IBIT has a larger scale—managing about $55 billion with net inflows exceeding $63 billion since its launch in 2024—its sales rely on external channels, limiting control. Regarding fees, IBIT charges about 0.25%, while market expectations suggest MSBT’s fee rate may be slightly lower, further enhancing competitiveness.

Currently, the U.S. Securities and Exchange Commission has not approved MSBT. The approval process typically takes 3 to 6 months. Morgan Stanley submitted an update on March 20, 2026, and market expectations are that the decision will be announced between mid-year and the second half of the year.

As MSBT advances, along with ETF layouts related to Ethereum and Solana, competition among Bitcoin ETFs is entering a new phase. If successful, MSBT could significantly impact the existing market landscape.