Morgan Stanley's Bitcoin ETF Sees $371M Inflows Amid $66.8M Net Asset Drop

Creations dominated after the zero-redemption month

MSBT issued 17.9 million shares and redeemed 250,000 during the reporting period, equal to 1,790 creation baskets and 25 redemption baskets. It ended June with 17.65 million shares outstanding and added a net $365.84 million through capital transactions.

MSBT completed its first trading month without daily redemptions. The 25 later redemption baskets ended that streak, although their value remained small relative to gross creations.

The filing’s GAAP figures and daily ETF flow tables use different measurement bases. MSBT’s $371.1 million contribution combined $200.3 million in cash proceeds with $170.8 million in Bitcoin received for share issuance.

Trust-level creations and redemptions occur through Authorized Participants in 10,000-share baskets at net asset value, according to the fund’s prospectus, while ordinary investors normally trade MSBT shares on NYSE Arca.

Those basket transactions do not identify the end sellers or their motivation, so the filing cannot establish whether retail activity drove the redemptions.

The trust had 21.74 million shares outstanding on July 31, up 4.09 million, or 23.17%, from June 30. The increase confirms net creation activity continued after the reporting period, though the filing does not identify which investors or distribution channels produced it.

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