Morgan Stanley’s Bitcoin Trust (MSBT) has marked a significant achievement by becoming the only spot Bitcoin exchange-traded fund (ETF) to avoid any daily net outflows during its inaugural month of trading. Launched on 8 April, the ETF began with net inflows of US$30.6 million (approximately AU$42.8 million) and a trading volume close to US$34 million (around AU$47.6 million). This exceptional debut was hailed by Morgan Stanley’s digital assets executive, Amy Oldenburg, as the firm’s strongest ETF launch to date. Bloomberg analyst Eric Balchunas highlighted it as ranking within the top 1% of ETF launches.
Despite broader market fluctuations, the MSBT demonstrated consistent investor interest. Over the first month, while inflows gradually decreased from initial large allocations to smaller daily contributions, the fund notably never logged a day of net outflows. By 7 May, the cumulative inflows reached US$193.6 million (about AU$271 million), boosting total net assets to US$239.6 million (roughly AU$335.4 million).
In contrast, the wider Bitcoin ETF market faced substantial volatility during this same period. A notable inflow was recorded on 17 April, with US$663.9 million (around AU$929.5 million) entering the sector, followed by back-to-back days of notable net outflows amounting to US$277.5 million (approximately AU$388.5 million) and US$145.7 million (close to AU$204 million) on 7 and 8 May, respectively.
On 7 May, MSBT was trading at a premium of 0.24% to its net asset value, surpassing the premiums of similar offerings such as BlackRock’s IBIT and Fidelity’s FBTC. This suggests that demand for the MSBT continues to exceed supply, reflecting strong interest from investors even amid fluctuations within the Bitcoin ETF sector.
In summary, Morgan Stanley’s Bitcoin ETF has not only set itself apart from competitors by maintaining consistent inflows but also illustrates a growing confidence among investors in the cryptocurrency market.
