Morgan Stanley's spot Bitcoin ETF holds close to $400 million in assets within its first quarter, ranking among this year's strongest fund debuts. The product drew fresh cash even as most US Bitcoin ETFs took a day of outflows this week.
Morgan Stanley's Bitcoin exchange-traded fund holds over $391 million in assets under management, despite launching only in April. The NYSE Arca-listed product is the first Bitcoin ETF offered by a bank, and it brought in more than $33 million on its opening day.
Senior Bloomberg Intelligence ETF analyst Eric Balchunas said Friday the fund ranks among the most successful launched this year so far. Investors added $15.7 million in new cash to the product this week, according to Farside Investors data.
The bank has been building toward crypto for years. It began offering wealthy clients Bitcoin exposure in 2021 through funds such as those run by Galaxy Digital, and last year CEO Ted Pick said the bank was working with regulators on how to offer crypto safely. In April, the bank's head of digital assets, Amy Oldenburg, said client education — not product design — is the central challenge facing Bitcoin adoption.
US Bitcoin ETFs draw fresh cash this week
After weeks of outflows and choppy trading, American Bitcoin ETFs have drawn fresh cash over the past seven days. Farside Investors data shows the products took in $274 million so far this week. The funds had gathered nearly $1 billion over seven days until Thursday, when every ETF except Morgan Stanley's saw outflows.
Bitcoin meanwhile recently traded at $64,096, down over 1% on the day and virtually flat across the week. European asset manager CoinShares said last week that while investors are again adding to Bitcoin ETFs, other factors may keep digital asset markets from climbing.
Research head James Butterfill flagged limited upside for Bitcoin: "We see no significant upside potential from here".
Source: Bitcoin Magazine
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