Key Takeaways
Morgan Stanley purchased an additional 286.7 Bitcoin (BTC) for approximately $22.48 million, bringing its total holdings to 2,620 BTC worth over $200 million as of May 1. The move signals deepening institutional conviction and escalates the competition for dominance in the spot Bitcoin ETF market.
"The acquisition by Morgan Stanley appears consistent with pricing supportive of a YES outcome for Bitcoin reaching high price targets, as it suggests ongoing institutional confidence," an analyst at Polymarket said. However, data from Onchain Lens confirmed the purchase, which comes just weeks after the bank launched its own spot Bitcoin ETF, MSBT, entering a field dominated by BlackRock’s IBIT.
The bank’s strategy appears focused on attracting large-scale institutional capital through aggressive pricing. The MSBT fund carries an annual fee of just 0.14%, undercutting the 0.25% fee on BlackRock’s IBIT and setting a new low for the market. While the 11 basis-point difference is minor for retail investors, it represents over $1.1 million in annual savings for every $1 billion invested—a significant sum for pension funds and sovereign wealth managers. MSBT has already attracted over $150 million in assets under management since its April launch.
This move solidifies Bitcoin’s role as a macro hedge amid ongoing geopolitical tensions, but the market appears to be pricing this as a long-term factor, not a short-term price driver. A Polymarket contract for Bitcoin reaching $94,000 between April 27 and May 3 remains priced at just 0.1% probability. The focus now shifts to net inflow data for MSBT and IBIT and whether BlackRock will respond by cutting its own fees to defend its market-leading position.
This article is for informational purposes only and does not constitute investment advice.
