Morgan Stanley Rolls Out Crypto Trading, Cuts Fees on ETrade

• Morgan Stanley begins E*Trade crypto trading pilot, charging 0.50% per transaction for retail users.
• Bank expands crypto strategy after launching low-cost Bitcoin ETF that gained strong early inflows.
• Wall Street firms increase crypto offerings as competition grows with exchanges and broker platforms.

Morgan Stanley launched a cryptocurrency trading pilot on its ETrade platform, offering lower retail trading fees than several major competitors. The Wall Street bank confirmed it will charge users 0.50% per crypto transaction. The pilot remains limited for now, although all 8.6 million ETrade clients are expected to receive access later this year.

E*Trade Pilot Targets Retail Crypto Traders

Morgan Stanley’s fee structure undercuts standard retail pricing at Coinbase, Robinhood, and Charles Schwab. Schwab introduced spot Bitcoin and Ether trading in April with a 0.75% transaction fee under its Schwab Crypto brand.

However, some trading platforms still offer lower costs for advanced users. Kraken Pro, Binance US, and select Coinbase Advanced tiers maintain cheaper pricing for certain crypto trades.

Meanwhile, the E*Trade rollout remains in testing mode before a broader public release. Bloomberg first reported the pilot details, later confirmed by a Morgan Stanley spokesperson.

Bitcoin ETF Expansion Supports Crypto Push

The trading rollout follows Morgan Stanley’s launch of its spot Bitcoin ETF, MSBT, on NYSE Arca in April. The ETF carries a 0.14% management fee, placing it among the lowest-cost Bitcoin funds available.

According to Farside Investors data, the ETF has already recorded $92 million in net inflows since launch. Additionally, the product attracted $30.6 million during its first trading day.

Bloomberg ETF analyst Eric Balchunas described the launch as significant due to Morgan Stanley’s large advisory network and asset base. The bank manages roughly $7 trillion in assets.

Wall Street Firms Expand Crypto Services

Morgan Stanley joins several major financial institutions expanding crypto-related offerings. Goldman Sachs recently filed with the SEC for a Bitcoin Premium Income ETF tied to options strategies.

Meanwhile, BNY Mellon continues operating its digital asset custody platform launched in 2022. The platform allows select institutional clients to hold and transfer Bitcoin and Ether.

The E*Trade pilot reflects increasing competition between traditional banks, brokerages, and crypto exchanges for retail trading activity and digital asset revenue.

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