The entry of Morgan Stanley into direct crypto trading is doing more than shaving a few basis points off transaction costs. It is setting off a pricing war that could reshape how investors access digital assets, including through ETFs.
The bank has rolled out crypto trading on its E*Trade platform at 50 basis points per transaction, undercutting rivals like Coinbase, Robinhood, and Charles Schwab, with plans to extend access to its 8.6 million clients later this year. That pricing edge, roughly half of some of the competitors’ fees, signals the beginning of a broader “race to zero” in crypto trading, a pattern already familiar in equity markets.
ETFs Could Be The Next Battlefield
For ETF investors, this is important. Lower trading costs on brokerage platforms reduce friction for retail investors, potentially accelerating flows into spot Bitcoin ETFs such as iShares Bitcoin Trust ETF (NASDAQ:IBIT) …
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