- Morgan Stanley’s MSBT became the only spot Bitcoin ETF to avoid daily net outflows during its first month of trading.
- The ETF accumulated US$193.6 million (AU$271 million) in inflows despite volatility across the broader Bitcoin ETF market.
- Investor demand remained firm even during sector-wide withdrawals, with MSBT trading at a premium to net asset value.
Morgan Stanley’s newly launched Bitcoin ETF maintained positive daily flows throughout its first month on the market, even as rival spot Bitcoin funds experienced sharp swings between inflows and withdrawals.
The Morgan Stanley Bitcoin Trust (MSBT), which launched on 8 April, opened with US$30.6 million (AU$42.8 million) in net inflows and roughly US$34 million (AU$47.6 million) in trading volume. Morgan Stanley digital assets executive Amy Oldenburg described the launch as the company’s strongest ETF debut, while Bloomberg analyst Eric Balchunas reportedly ranked it among the top 1% of ETF launches.
Figures reviewed by The Block showed MSBT’s inflows gradually declining over the month from larger early allocations to smaller daily contributions, though the fund never posted a net outflow day. As of 7 May, cumulative inflows had reached US$193.6 million (AU$271 million), with total net assets standing at US$239.6 million (AU$335.4 million).
Related: JPMorgan: Investors Are Choosing Bitcoin Over Gold in the Debasement Trade
Wider Bitcoin ETF Market Sees Reversal
During the same period, the wider spot Bitcoin ETF market experienced significant volatility. The sector posted a US$663.9 million (AU$929.5 million) inflow day on 17 April before swinging to net outflows of US$277.5 million (AU$388.5 million) and US$145.7 million (AU$204 million) on 7 and 8 May, respectively.
MSBT also traded at a 0.24% premium to net asset value on 7 May, exceeding comparable premiums recorded by BlackRock’s IBIT and Fidelity’s FBTC, indicating investor demand outpaced available supply.
Related: Bitcoin-Backed ‘Digital Credit’ Market Eyes US$3 Trillion Opportunity
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