Global investment bank Morgan Stanley began trading in its bitcoin spot exchange-traded fund (ETF), MSBT, on April 8 local time.

Coindesk reported that BlackRock’s flagship bitcoin spot ETF, iShares Bitcoin Trust (IBIT), has led the market, but Morgan Stanley has begun to shake up the competitive landscape with lower fees and its own wealth management distribution network.

MSBT’s total fee is 0.14 percent, below IBIT’s 0.25 percent. The gap is not large, but bitcoin spot ETFs all hold bitcoin directly and track its price, so investors weigh costs, liquidity and accessibility. Fees are one of the few differentiators investors can meaningfully compare in this market.

IBIT, meanwhile, remains the leader in scale and trading since launch. With about $55 billion in assets under management, it has established itself as the product with the highest liquidity, including bitcoin spot ETF-related shares and options. Analysts say that kind of liquidity is difficult to catch up with in a short period.

James Seyffart (제임스 세이파트), an ETF analyst at Bloomberg Intelligence, said it remains to be seen whether MSBT’s launch will produce actual fund flows. He said IBIT is the most liquid product in ETF trading and the options market, and MSBT will not find it easy to compete at that level, at least in the near term.

Still, Morgan Stanley’s entry is seen as a factor that could shift the center of gravity in competition. Morgan Stanley has a large wealth management organization, and its advisers can adjust client asset allocations in a single trade. That increases the likelihood that new inflows will head to MSBT before existing products.

Nate Geraci (네이트 제라치), president of The ETF Store, said distribution is the most important factor in the ETF market and that Morgan Stanley is noteworthy for its large wealth management workforce. He said MSBT’s offering of the lowest costs among bitcoin spot ETFs is also a combination that raises its chances of success. He added that MSBT’s fee is 11 basis points lower than IBIT’s, creating a gap that forces attention from not only investors but also BlackRock.

The launch shows that competition in the bitcoin spot ETF market is changing. Early on, large asset managers, high trust and abundant liquidity drove inflows. As more credible new entrants come in, sensitivity to costs is increasing. Morgan Stanley’s entry could accelerate that trend.

The market is also increasingly dividing into roles. IBIT maintains its advantage in deep liquidity that can absorb active trading demand. New products such as MSBT compete on lower costs and strong distribution channels. Morgan Stanley’s wealth management unit manages customer assets worth trillions of dollars and has one of the industry’s largest adviser networks, so its influence could grow as more money moves through financial advisory channels rather than direct trading.

IBIT remains the market’s benchmark. But as fee-cutting competition continues and new products take direct aim at BlackRock’s position, IBIT’s advantage in inflows has, for the first time, come under sustained test.