Morgan Stanley Launches Low-Fee Bitcoin ETF, Sparking Price War
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy MS?
Source: Yahoo Finance
- Fee Competition: Morgan Stanley announced in a filing with the SEC that its upcoming spot Bitcoin ETF will charge just 14 basis points (0.14%), undercutting the lowest current options and potentially igniting a price war among major financial firms.
- Market Impact: As most Bitcoin ETFs provide identical exposure to Bitcoin's price, investors and advisors typically opt for the fund with the lowest fees, and Morgan Stanley's competitive pricing could lead to billions of dollars shifting away from higher-fee competitors.
- Partnerships: Morgan Stanley has partnered with industry leaders such as Coinbase Inc. and BNY Mellon, with Coinbase acting as the prime broker and custodian for the ETF's Bitcoin holdings, while BNY Mellon manages the fund's cash and administrative functions, enhancing the fund's operational capabilities.
- Listing Progress: The Bitcoin ETF (MSBT) has received a listing notice from the New York Stock Exchange, and if approved by the SEC, it will be the first spot Bitcoin ETF issued directly by a major U.S. bank, marking a significant move into the cryptocurrency market for Morgan Stanley.
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Analyst Views on MS
Wall Street analysts forecast MS stock price to rise
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 158.390
Low
132.00
Averages
185.00
High
219.00
Current: 158.390
Low
132.00
Averages
185.00
High
219.00
About MS
Morgan Stanley is a global financial services company. The Company is engaged in providing a range of investment banking, securities, wealth management and investment management services. Its segments include Institutional Securities, Wealth Management and Investment Management. Its Institutional Securities segment provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Its Wealth Management segment provides an array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Its Investment Management segment provides a range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Its investment banking services consist of capital raising and financial advisory services, including the underwriting of debt and other products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Morgan Stanley Launches Low-Fee Bitcoin ETF, Sparking Price War
- Fee Competition: Morgan Stanley announced in a filing with the SEC that its upcoming spot Bitcoin ETF will charge just 14 basis points (0.14%), undercutting the lowest current options and potentially igniting a price war among major financial firms.
- Market Impact: As most Bitcoin ETFs provide identical exposure to Bitcoin's price, investors and advisors typically opt for the fund with the lowest fees, and Morgan Stanley's competitive pricing could lead to billions of dollars shifting away from higher-fee competitors.
- Partnerships: Morgan Stanley has partnered with industry leaders such as Coinbase Inc. and BNY Mellon, with Coinbase acting as the prime broker and custodian for the ETF's Bitcoin holdings, while BNY Mellon manages the fund's cash and administrative functions, enhancing the fund's operational capabilities.
- Listing Progress: The Bitcoin ETF (MSBT) has received a listing notice from the New York Stock Exchange, and if approved by the SEC, it will be the first spot Bitcoin ETF issued directly by a major U.S. bank, marking a significant move into the cryptocurrency market for Morgan Stanley.
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- Historical Repetition: This event mirrors the previous repeal of a similar rule during the Obama administration, highlighting the financial industry's resistance to regulatory measures through legal challenges, potentially exposing investors to lower protection standards.
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Morgan Stanley Launches Low-Fee Bitcoin ETF, Sparking Price War
- Fee Competition: Morgan Stanley announced in a filing with the SEC that its upcoming spot Bitcoin ETF will charge just 14 basis points (0.14%), undercutting the lowest current options and potentially igniting a price war among major financial firms.
- Market Impact: As most Bitcoin ETFs provide identical exposure to Bitcoin's price, investors and advisors typically opt for the fund with the lowest fees, and Morgan Stanley's competitive pricing could lead to billions of dollars shifting away from higher-fee competitors.
- Partnerships: Morgan Stanley has partnered with industry leaders such as Coinbase Inc. and BNY Mellon, with Coinbase acting as the prime broker and custodian for the ETF's Bitcoin holdings, while BNY Mellon manages the fund's cash and administrative functions, enhancing the fund's operational capabilities.
- Listing Progress: The Bitcoin ETF (MSBT) has received a listing notice from the New York Stock Exchange, and if approved by the SEC, it will be the first spot Bitcoin ETF issued directly by a major U.S. bank, marking a significant move into the cryptocurrency market for Morgan Stanley.
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- Rule Repeal Impact: The U.S. court has struck down the fiduciary rule aimed at enhancing retirement investor protections for the second time, which may lead to retirement investors receiving investment advice that does not serve their best interests, thereby increasing market confusion and uncertainty.
- Historical Repetition: This event mirrors the previous repeal of a similar rule during the Obama administration, highlighting the financial industry's resistance to regulatory measures through legal challenges, potentially exposing investors to lower protection standards.
- Investment Decision Risks: Recent data shows that approximately 6 million individuals rolled nearly $700 billion into IRAs in 2022, and the absence of fiduciary rules may diminish the quality of advice surrounding these significant financial decisions, increasing risks for investors.
- Industry Reaction: The insurance industry welcomed this ruling as a victory for consumers, arguing that the Biden-era rule exceeded the Department's authority, indicating that future investors must be more cautious in selecting advisors to ensure they receive transparent and interest-aligned advice.
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- Meta Stock Surge: Meta was named a top pick by Morgan Stanley, with shares rising over 2%, as analysts argue that despite AI investment and regulatory risks, Meta remains competitively strong; Jim Cramer supports this view, suggesting investors should not sell due to regulatory concerns.
- Cybersecurity Stock Rebound: CrowdStrike and Palo Alto Networks rebounded after significant declines last Friday, with CrowdStrike up nearly 5% following an upgrade to buy-equivalent by Wolfe Research, as analysts believe advancements in AI models will increase demand for cybersecurity.
- Executive Buy Signal: Palo Alto Networks CEO Nikesh Arora purchased about $10 million in shares on Friday, resulting in a 7% stock increase, with Jim Cramer noting that the market is mispricing the stock, reflecting executive confidence in the company's future.
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- Investment Trends: The performance of these stocks reflects ongoing trends in the fintech sector, indicating investor interest.
- Market Sentiment: The modest gains suggest a cautious optimism among investors in the current market environment.
- Future Outlook: Analysts are watching these companies closely for potential growth opportunities and market developments.
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