Morgan Stanley’s spot Bitcoin ETF added approximately 232.5 BTC worth $15.05 million as Bitcoin traded below $65,000, lifting the fund’s holdings above 6,500 BTC for the first time.
Summary
- MSBT added 232.5 BTC, valued at approximately $15.05 million, according to Arkham.
- The fund’s holdings increased to 6,563 BTC worth more than $426 million.
- BlackRock, Fidelity and Franklin Templeton also accumulated Bitcoin during the recent market weakness.
- MSBT launched in April with a 0.14% annual management fee.
Morgan Stanley’s Bitcoin ETF adds 232 BTC
Blockchain intelligence platform Arkham reported that the Morgan Stanley Bitcoin Trust increased its holdings by approximately 232.548 BTC as Bitcoin remained under pressure near $65,000.
The purchase was valued at $15.05 million, implying an average price of around $64,718 per Bitcoin. It raised the fund’s total holdings to 6,563 BTC, worth more than $426 million at current market prices.
The transaction marked the first time MSBT’s Bitcoin balance exceeded 6,500 BTC. It also expanded the fund’s holdings during a period when Bitcoin traded below the average purchase price of many recent buyers.
CryptoQuant analyst Axel Adler Jr. said Bitcoin was trading below the realized price of short-term holders, referring to coins held for less than 155 days. Bitcoin traded around $64,952 on Aug. 8, while the short-term holder realized price stood at $67,523.
This left the spot price approximately 3.8% below the cost basis, creating potential selling pressure from recent holders seeking to exit around break-even.
Other Bitcoin ETFs also bought during the dip
Morgan Stanley was not the only major financial institution whose Bitcoin ETF added assets during the latest decline.
Arkham reported on Aug. 4 that BlackRock’s spot Bitcoin ETF bought approximately $111 million worth of BTC during the previous trading session. Fidelity added about $33 million, while Franklin Templeton purchased approximately $9 million.
The three funds accumulated around $153 million in Bitcoin combined. Arkham said none of the tracked ETFs sold Bitcoin that day and that the funds had recorded no Bitcoin sales during the opening sessions of August.
These figures refer to Bitcoin entering wallets associated with the ETFs. Such additions generally reflect investor inflows and the creation of new fund shares rather than purchases made for the asset managers’ corporate balance sheets.
The renewed accumulation followed a difficult period for U.S. spot Bitcoin ETFs. Crypto.news previously reported that the products recorded $265 million in net outflows as Bitcoin tested $63,000 on Aug. 1.
MSBT assets rise from July level
Morgan Stanley launched MSBT on April 8, becoming the first major U.S. commercial bank to issue a spot Bitcoin ETF under its own name.
Crypto.news previously reported that the fund launched with a 0.14% annual management fee. That undercut the 0.25% fees charged by BlackRock’s IBIT and Fidelity’s FBTC, while coming in one basis point below the Grayscale Bitcoin Mini Trust.
MSBT attracted $103 million in cumulative net inflows within eight days of its launch, overtaking WisdomTree’s Bitcoin Fund at the time. The rapid increase pointed to early demand from investors seeking Bitcoin exposure through Morgan Stanley’s investment platform.
The fund held approximately $392 million in net assets as of July 24, according to another crypto.news report citing Morgan Stanley’s product page. Arkham’s latest estimate of more than $426 million suggests its holdings have since expanded by approximately $34 million, though part of that difference may reflect changes in Bitcoin’s market price.
Bitcoin remains below a key holder cost level
Bitcoin’s inability to reclaim the short-term holder realized price leaves $67,523 as an important near-term level. A recovery above that area could reduce pressure on recent buyers currently holding unrealized losses.
Continued ETF purchases may help absorb Bitcoin entering the market, but the latest additions do not confirm that the broader outflow trend has reversed. Daily net-flow data will determine whether Morgan Stanley’s purchase forms part of a sustained return in institutional demand.
Failure to hold the $64,000 area could expose Bitcoin to another test of its recent lows. A move above $67,500, however, would return the asset above the average cost basis of short-term holders and improve its near-term structure.
