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▲ Bitcoin (BTC), Morgan Stanley/ChatGPT generated image
The initial demand for Morgan Stanley's Bitcoin (BTC) ETF has primarily come from self-directed investor transactions rather than allocations led by financial advisors. Amy Oldenburg, Morgan Stanley's Head of Digital Asset Strategy, stated that the initial fund flows for the company's Bitcoin ETP were closer to transactions where investors directly purchased through the platform.
Bitcoinist reported on May 21 (local time) that Oldenburg made these remarks on Nate Geraci's Crypto Prime podcast, which was released on May 20. Oldenburg explained, "The very early weeks of the ETF fund flows were all self-directed," adding, "That's an important part to understand because there were a lot of articles out there that our financial advisors were using our own product."
Morgan Stanley Investment Management applied for three cryptocurrency ETFs, including Bitcoin, Solana (SOL), and Ethereum (ETH), last January. The Bitcoin product, traded under the ticker MSBT, was launched in early April, and Geraci explained in the interview that the product was nearing $300 million in assets under management in about a month and a half. He assessed MSBT as one of the relatively successful products among the more than 460 new ETFs launched this year.
Oldenburg emphasized that while Morgan Stanley financial advisors can use MSBT, the advisory platform has an open architecture, and advisors are not limited to only the company's own Bitcoin ETP. She stated that advisors can review various Bitcoin ETFs available for solicitation on the platform and have a fiduciary responsibility to ultimately determine the most suitable product for their clients.
Initial demand originated from self-directed channels, including bank platforms and ETrade. Oldenburg stated, "Most of the initial fund flows were self-directed, meaning individuals actively purchased those assets directly through bank platforms, ETrade platforms, and other avenues." She noted that similar behavior is observed across Morgan Stanley's broader wealth management platform, suggesting that more discussions are needed between advisors and clients regarding how Bitcoin exposure can fit into asset allocation.
Oldenburg explained that Morgan Stanley generally does not launch products that clients do not demand, and the company's digital asset strategy is driven by client demand. She also mentioned that MSBT's expense ratio is 14 basis points, stating that single-asset passive products should be priced in line with traditional financial market expectations. She also revealed that the fees for direct spot crypto trading plans through ETrade are set at 50 basis points per transaction. Oldenburg explained that there was "quite a bit of interest" in in-kind creation/redemption transactions, which move spot cryptocurrencies into the ETF structure, indicating that holding cryptocurrencies directly has limitations when clients want access to services like estate planning, lending, and capital market functions.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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