BlackRock Posts Massive Bitcoin ETF Inflows as Morgan Stanley Debuts MSBT With Strong Early Demand

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BlackRock Posts Massive Bitcoin ETF Inflows as Morgan Stanley Debuts MSBT With Strong Early Demand

Inflows into U.S. spot Bitcoin ETFs surged Thursday, led by BlackRock’s iShares Bitcoin Trust, which pulled in $269.3 million, its strongest single-day performance in five weeks. The move followed a period of volatility tied to geopolitical tensions and reversed two straight days of net outflows across the sector.

In total, the 12 U.S. spot Bitcoin ETFs recorded $358.1 million in net inflows, signaling renewed investor demand as bitcoin trades below its recent highs, thanks to Farside data. 

Fidelity Investments’ FBTC posted the second-largest inflow at $53.3 million. Morgan Stanley’s newly launched Bitcoin Trust (MSBT) brought in $14.9 million on its second day of trading, marking what the bank described as its strongest ETF debut. The firm’s digital asset leadership indicated the product represents an early step in a broader pipeline of offerings.

Other issuers also participated in the rebound. Bitwise Asset Management and ARK Invest’s 21Shares fund added $11.7 million and $4.8 million, while Franklin Templeton and VanEck each saw about $2 million in inflows.

Year to date, BlackRock’s IBIT has attracted $1.5 billion in net inflows, even as bitcoin has declined from a 2026 peak near $97,000 to around $72,100. Company executives have said the fund’s investor base skews toward long-term holders.

U.S. spot Bitcoin ETFs ended 2025 with $56.59 billion in cumulative net inflows and now stand at $56.51 billion, leaving the category about $80 million below breakeven for 2026.

Morgan Stanley launches a bitcoin ETF

Earlier this week, Morgan Stanley entered the spot bitcoin ETF market with the launch of its Bitcoin Trust (MSBT), posting strong early demand and intensifying competition across the sector.

The fund recorded about $34 million in first-day trading volume and $30.6 million in net inflows, which Morgan Stanley’s Amy Oldenburg said marked the “best first day of trading for any of our ETFs.” MSBT carries a 14 basis point fee, undercutting several rival products and adding pressure to an already competitive fee environment.

Despite the debut, U.S. spot bitcoin ETFs saw $94 million in net outflows. Fidelity’s FBTC and Ark & 21Shares’ ARKB led redemptions, while Grayscale’s GBTC also posted losses. BlackRock’s IBIT bucked the trend with $40.4 million in inflows.

The flows highlight ongoing rotation among institutional investors amid bitcoin price volatility, with traders taking profits after the asset climbed back above $70,000.

Morgan Stanley’s entry is seen as a structural shift, leveraging its $6 trillion wealth management network and thousands of financial advisors to distribute crypto exposure more broadly. Analysts say fee compression and distribution advantages will likely shape the next phase of competition.

Inflows into MSBT will be watched to see if traditional banks can challenge ETF leaders.

This post BlackRock Posts Massive Bitcoin ETF Inflows as Morgan Stanley Debuts MSBT With Strong Early Demand first appeared on Bitcoin Magazine and is written by Micah Zimmerman.