Morgan Stanley’s Bitcoin ETF drew $371 million of share contributions while Bitcoin erased $66.8 million

Morgan Stanley Bitcoin Trust (MSBT) recorded a $66.8 million decrease in net assets from operations during its first 85 days, even as the exchange-traded fund brought in $371.1 million of gross share contributions against $5.26 million of redemption distributions.

The trust’s first quarterly filing shows creations dominated redemptions while Bitcoin fell. Redemption distributions equaled 1.42% of gross contributions from April 7 through June 30.

Unrealized Bitcoin depreciation accounted for $66.17 million of the operating-period decrease, nearly 99%. The balance consisted of $618,611 in realized Bitcoin losses and $72,288 in sponsor fees, distinguishing the $66.86 million accounting result from an ETF outflow measure.

Morgan Stanley's Bitcoin ETF net asset value per share fell 14.01%, from $19.70 to $16.94, while its disclosed CoinDesk Bitcoin benchmark declined 13.98% over the same period. At quarter-end, the trust held 5,059.3077 BTC with a $365.18 million cost basis and a fair value of $299 million, based on a Bitcoin price of $59,101.49.

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