Key Highlights
- E*Trade begins crypto trading pilot through Morgan Stanley charging 0.50% per transaction
- Pricing strategy positions the service below competitors including Coinbase, Robinhood, and Charles Schwab
- Full-scale launch targeting all 8.6 million E*Trade account holders planned for later in 2025
- Morgan Stanley’s MSBT Bitcoin ETF has accumulated $92 million in net inflows following its market debut
- Charles Schwab entered spot crypto trading space last month with 0.75% transaction fees
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 of these details to Cointelegraph following a Tuesday report from Bloomberg.
The pricing model falls below typical retail transaction costs at major platforms including Coinbase, Robinhood, and Charles Schwab. Schwab entered the direct Bitcoin and Ether trading market in April through its “Schwab Crypto” offering, establishing a 0.75% per-trade fee structure.
While the E*Trade trial operates with limited access currently, Morgan Stanley aims to extend availability to its complete base of 8.6 million E*Trade account holders by the conclusion of 2025.
This development arrives after Morgan Stanley introduced its spot Bitcoin ETF under the ticker MSBT on the New York Stock Exchange in April. The investment product features a 0.14% management fee, ranking among the market’s most competitive options.
MSBT ETF Shows Strong Early Performance
Data from Farside Investors indicates the MSBT ETF has attracted $92 million in total net inflows from its inception. The fund’s inaugural trading session on NYSE Arca generated $30.6 million in investor capital.
Bloomberg ETF analyst Eric Balchunas characterized the introduction as a “big deal,” highlighting Morgan Stanley’s $7 trillion asset base under management. He noted the competitive fee structure could streamline Bitcoin allocation processes for the bank’s advisory network.
Morgan Stanley holds the distinction of being 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 most affordable options available.
Broader Wall Street Adoption of Digital Assets Continues
Goldman Sachs submitted documentation to the SEC in April for a Bitcoin Premium Income ETF. The proposed investment vehicle would generate returns through call option sales on Bitcoin exchange-traded products, avoiding direct Bitcoin holdings.
BNY Mellon introduced a digital asset custody solution in October 2022, enabling selected clients to maintain and transfer Bitcoin and Ether holdings.
These developments demonstrate how multiple prominent financial institutions are broadening cryptocurrency service offerings across retail and institutional segments.
Morgan Stanley has adopted an aggressive pricing strategy for its crypto trading platform. The approach mirrors the competitive cost structure implemented for the MSBT ETF.
Platforms such as Kraken Pro, Binance US, and certain Coinbase Advanced subscription levels do provide lower transaction costs than Morgan Stanley’s 0.50% rate for qualifying users.
The E*Trade cryptocurrency trial program operates in restricted capacity at present. Complete deployment across the entire client base remains scheduled for later this calendar year.
