Better Buy: iShares Bitcoin ETF vs. Morgan Stanley Bitcoin ETF
2026-08-05 10:30
•Todd Shriber •The Motley Fool
• ••• Axe Cap view
Picking Sides in the Bitcoin ETF Race
Comparing iShares and Morgan Stanley’s Bitcoin ETFs reveals clear trade-offs in cost and liquidity.
Bitcoin ETFs are gaining traction, but not all are created equal. iShares Bitcoin Trust ETF (IBIT) leads with $46.5 billion under management and tight bid/ask spreads, which means buying and selling happen smoothly and aren’t costly. This makes IBIT attractive for active or institutional traders valuing liquidity. On the other hand, Morgan Stanley’s Bitcoin Trust ETF (MSBT) is much smaller but boasts the lowest expense ratio at 0.14%, nearly half of iShares’ 0.25%. For a South African investor, that’s significant because fees eat into returns over time, especially with rand volatility adding an extra layer of risk. Given rand’s recent softness versus the dollar, owning a low-cost Bitcoin ETF might be smarter since fees are charged in USD and erode rand-based gains more quickly. But if you need to trade frequently or want a trusted brand with proven size, IBIT remains a safe bet. Watch the rand; a sudden rebound could change this calculus. this is just our opinion and not financial advice
For long-term exposure to Bitcoin via the JSE or offshore funds accessible from South Africa, lean toward Morgan Stanley’s ETF for its cost efficiency. Consider iShares only if liquidity is crucial to your strategy.
- IBIT
- MSBT
- USD/ZAR
- Rand dollar volatility eats into USD-priced Bitcoin ETF returns
- Liquidity issues with smaller ETFs can widen trade spreads
6/10
The article compares two spot Bitcoin ETFs: iShares Bitcoin Trust ETF (IBIT), the category leader with $46.5 billion in assets, and Morgan Stanley Bitcoin Trust ETF (MSBT), a newer entrant with $392.3 million in assets. While iShares benefits from brand recognition and tight bid/ask spreads, Morgan Stanley differentiates itself with the lowest expense ratio at 0.14% versus iShares' 0.25%, making it the better choice for long-term investors.
Our take is based on reporting first published by The Motley Fool.