Key Highlights
- E*Trade begins testing crypto trading services with a 0.50% transaction fee structure
- Pricing beats standard fees at major platforms including Coinbase, Robinhood, and Charles Schwab
- Full deployment to E*Trade’s complete user base of 8.6 million is scheduled for later in 2025
- Morgan Stanley’s spot Bitcoin ETF (MSBT) has accumulated $92 million in net inflows following its debut
- Charles Schwab introduced spot crypto services in recent weeks with 0.75% transaction charges
Morgan Stanley has initiated a trial crypto trading program through E*Trade, implementing a transaction fee of 50 basis points (0.50%). The financial institution verified these specifics to Cointelegraph following Tuesday’s Bloomberg coverage.
BREAKING: $7.9T Morgan Stanley is rolling out crypto trading, undercutting rivals with lower fees.
The Wall Street bank will charge E*Trade users a 0.50% transaction fee, undercutting Coinbase, Robinhood, and Charles Schwab.
The rollout is in testing now, and all 8.6 million… pic.twitter.com/7IdYp8v4DW
— Coin Bureau (@coinbureau) May 6, 2026
This pricing structure comes in below the typical retail charges found at Coinbase, Robinhood, and Charles Schwab. Schwab recently unveiled its spot Bitcoin and Ether trading capabilities in April through its “Schwab Crypto” offering, implementing a 0.75% transaction fee.
While the E*Trade trial currently operates with restricted access, Morgan Stanley has announced intentions to extend availability across its entire E*Trade customer base of 8.6 million before 2025 concludes.
The initiative arrives on the heels of Morgan Stanley’s introduction of its spot Bitcoin ETF, designated by ticker MSBT, which began trading on the New York Stock Exchange in April. The investment product features a 0.14% management fee, positioning it among the market’s most competitively priced options.
MSBT ETF Shows Promising Early Performance
Data from Farside Investors indicates the MSBT ETF has attracted $92 million in cumulative net inflows from its inception. During its inaugural trading session on NYSE Arca, the fund secured $30.6 million in inflows.
Eric Balchunas, an ETF analyst at Bloomberg, characterized the introduction as significant, highlighting Morgan Stanley’s substantial $7 trillion in managed assets. He noted the competitive fee arrangement could facilitate easier Bitcoin allocations by the firm’s financial advisors on behalf of clients.
Morgan Stanley stands as the first major banking institution to create and launch its own Bitcoin ETF. While VanEck’s HODL ETF maintains a competitive advantage through its fee waiver program, MSBT ranks among the industry’s most affordable options.
Traditional Finance Giants Expand Digital Asset Offerings
Goldman Sachs submitted documentation to the SEC in April proposing a Bitcoin Premium Income ETF. The planned product would generate returns through selling call options on Bitcoin exchange-traded products, avoiding direct Bitcoin holdings.
BNY Mellon introduced a digital asset custody solution in October 2022, providing qualified clients with Bitcoin and Ether holding and transfer capabilities.
These developments demonstrate how numerous prominent financial organizations are broadening cryptocurrency offerings for both retail investors and institutional participants.
Morgan Stanley has adopted an assertive pricing strategy for its crypto trading platform. The approach mirrors the competitive fee structure implemented for the MSBT ETF.
However, it merits attention that certain platforms such as Kraken Pro, Binance US, and select Coinbase Advanced membership levels provide lower transaction costs than Morgan Stanley’s 0.50% rate for specific user segments.
The E*Trade cryptocurrency pilot program is currently operational with limited access. Complete availability across the entire client network is anticipated before year’s end.
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