Key Highlights
- E*Trade begins testing crypto trading with a 0.50% transaction fee structure
- Morgan Stanley’s pricing beats standard fees from Coinbase, Robinhood, and Charles Schwab
- Full platform access coming to 8.6 million E*Trade users before year-end
- The firm’s Bitcoin ETF (MSBT) has attracted $92 million in net inflows since debut
- Schwab entered the crypto market last month with a 0.75% fee per transaction
Morgan Stanley has initiated a cryptocurrency trading trial program on E*Trade, implementing a fee structure of 50 basis points (0.50%) for each transaction. The financial institution provided confirmation to Cointelegraph following Tuesday’s Bloomberg coverage.
This pricing model comes in below the typical retail charges at major platforms including Coinbase, Robinhood, and Charles Schwab. Schwab entered the cryptocurrency space in April with direct Bitcoin and Ether trading through its “Schwab Crypto” service, implementing a 0.75% transaction fee.
While the E*Trade trial currently serves a restricted user base, Morgan Stanley has outlined plans to extend access across its entire 8.6 million E*Trade customer base by the conclusion of 2025.
This development comes on the heels of Morgan Stanley’s introduction of its spot Bitcoin exchange-traded fund, trading under ticker MSBT, which made its New York Stock Exchange debut in April. The investment vehicle features a 0.14% management fee, positioning it among the market’s most cost-effective options.
MSBT ETF Demonstrates Strong Early Performance
Data from Farside Investors indicates the MSBT ETF has accumulated $92 million in aggregate net inflows following its market entry. The fund secured $30.6 million during its inaugural trading session on NYSE Arca.
Bloomberg ETF analyst Eric Balchunas characterized the introduction as a “big deal,” highlighting Morgan Stanley’s commanding $7 trillion assets under management position. He noted the competitive fee structure may facilitate easier Bitcoin allocation decisions for the bank’s advisory team when managing client portfolios.
Morgan Stanley has distinguished itself as the first major banking institution to create its own Bitcoin ETF. While VanEck’s HODL ETF maintains an advantage through its fee waiver program, MSBT ranks among the industry’s most affordable offerings.
Traditional Financial Giants Accelerate Cryptocurrency Adoption
Goldman Sachs submitted documentation to the SEC in April proposing a Bitcoin Premium Income ETF. The planned investment vehicle would generate returns through the sale of call options on Bitcoin exchange-traded products, avoiding direct cryptocurrency holdings.
BNY Mellon introduced a digital asset custody solution in October 2022, providing qualified institutional clients with Bitcoin and Ether storage and transfer capabilities.
These strategic initiatives demonstrate how established financial institutions are broadening cryptocurrency service offerings for both retail investors and institutional participants.
Morgan Stanley has adopted more competitive pricing for its crypto trading platform compared to competing services. The approach mirrors the low-cost strategy deployed for the MSBT ETF.
It should be mentioned that specialized trading platforms such as Kraken Pro, Binance US, and certain Coinbase Advanced subscription tiers provide lower fee structures than Morgan Stanley’s 0.50% rate for qualified traders.
The E*Trade cryptocurrency pilot program is operational in its preliminary phase. Complete platform deployment to the full client base is anticipated before the calendar year concludes.
