TLDR
- E*Trade introduces crypto trading through a pilot program charging 0.50% per transaction
- Pricing beats standard fees from Coinbase, Robinhood, and Charles Schwab
- Complete rollout to E*Trade’s 8.6 million customer base scheduled for later in 2025
- Morgan Stanley’s MSBT Bitcoin ETF has attracted $92 million in net inflows since inception
- Charles Schwab entered the spot crypto market last month with 0.75% trading fees
Morgan Stanley has initiated a crypto trading trial program on E*Trade, implementing a fee structure of 50 basis points (0.50%) for each transaction. Following a Bloomberg report published Tuesday, the financial institution verified these details with Cointelegraph.
This pricing strategy positions E*Trade below the typical retail charges at competing platforms including Coinbase, Robinhood, and Charles Schwab. Schwab entered the cryptocurrency space in April with its “Schwab Crypto” offering, enabling spot Bitcoin and Ether purchases at a 0.75% transaction fee.
While the E*Trade program remains in its testing phase with limited access, Morgan Stanley intends to extend availability to its entire E*Trade user base of 8.6 million customers by year’s end.
This development comes on the heels of Morgan Stanley’s introduction of its spot Bitcoin ETF under the ticker MSBT, which debuted on the New York Stock Exchange in April. The investment product features a 0.14% management fee, positioning it among the most affordable options available.
Morgan Stanley’s Bitcoin ETF Gains Traction
Data from Farside Investors reveals that the MSBT ETF has accumulated $92 million in total net inflows from its market debut. The fund’s initial trading session on NYSE Arca generated $30.6 million in investor capital.
Bloomberg ETF analyst Eric Balchunas characterized the launch as a “big deal,” highlighting Morgan Stanley’s impressive $7 trillion in assets under management. He noted that the competitive cost structure could facilitate easier Bitcoin allocation by the bank’s financial advisors for client portfolios.
Morgan Stanley stands as the first major banking institution to introduce its proprietary Bitcoin ETF. While VanEck’s HODL ETF maintains a competitive advantage through its fee waiver program, MSBT ranks among the most cost-effective options in the marketplace.
Other Wall Street Firms Are Moving Into Crypto Too
Goldman Sachs submitted documentation to the SEC in April seeking approval for 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 Bitcoin holdings.
BNY Mellon introduced a digital asset custody solution in October 2022, providing selected institutional clients with capabilities to store and transfer Bitcoin and Ether.
These strategic initiatives demonstrate that numerous prominent financial institutions are broadening their cryptocurrency service offerings for both retail investors and institutional participants.
Morgan Stanley has adopted an aggressive pricing strategy for its crypto trading platform that mirrors the competitive approach used for the MSBT ETF launch.
It should be mentioned that certain specialized platforms including Kraken Pro, Binance US, and Coinbase Advanced trading tiers can provide lower fee structures than Morgan Stanley’s 0.50% rate for qualifying users.
The E*Trade cryptocurrency pilot program is currently operational in restricted capacity. The comprehensive deployment to all eligible clients is anticipated before the close of 2025.
