BlackRock’s Bitcoin ETF Shrinks $225.5M Friday as Morgan Stanley Eyes 14 bps Fee
BlackRock’s iShares Bitcoin Trust led $296 million in spot Bitcoin ETF outflows last week, including $225.5 million pulled on Friday under mounting geopolitical and macro risk. Morgan Stanley plans a spot Bitcoin Trust with a 14 bps fee versus IBIT’s 25 bps, threatening to divert institutional flows to its lower-cost product.
1. Cumulative Weekly ETF Outflows
BlackRock’s iShares Bitcoin Trust and other spot Bitcoin ETFs saw cumulative outflows of $296 million between March 24 and March 27 as investors shifted to defensive positions amid rising geopolitical tensions and macroeconomic concerns.
2. IBIT’s Friday Redemptions
On Friday alone, IBIT experienced $225.5 million of redemptions, marking the largest single-day withdrawal of U.S. spot Bitcoin ETF assets during the week and capping a volatile reversal following strong inflows earlier in the week.
3. Morgan Stanley Low-Fee ETF Launch
Morgan Stanley will introduce the Morgan Stanley Bitcoin Trust with a 14 bps annual fee, undercutting IBIT’s 25 bps charge and leveraging its 16,000-plus advisor network to channel institutional clients into its lower-cost product.
4. Potential Implications for IBIT
Steep outflows combined with the threat of a lower-fee competitor may pressure IBIT’s net asset growth, prompting possible fee revisions, enhanced client incentives or expanded distribution efforts to retain market share.