Bitcoin Welcomes Morgan Stanley

ByteFolio Issue 203;

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This issue covers Quantum Computing , Helium (HNT), and Stablecoins.

Bitcoin’s ByteTrend Score drops to a 1. The price just made a 20-day low and dropped below its 30-day moving average, which is a setback. On the positive side, there is still no new low, despite the volatile backdrop of the war in Iran.

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Bitcoin

Source: Bloomberg

Bitcoin in Nasdaq is important here. Tech has had a 12% correction since October, while Bitcoin has fallen by 45% and 50% at its low.

Bitcoin in Nasdaq

Source: Bloomberg

However, since hostilities began at the end of February, Bitcoin has served as a safe haven amid turbulent times. The bull scenario needs to see Bitcoin leadership over tech. Note that the chart begins at the Bitcoin low.

Bitcoin in Nasdaq – since the Bitcoin Low

Source: Bloomberg

This may not seem much, but if this turns out to be the cycle low, Bitcoin is in quite a good place. In the last cycle, it lagged the Nasdaq by 70%, which is disastrous. This time would be 50%, which is a step change.

Bitcoin in Nasdaq – since the 2021 High

Source: Bloomberg

Outperformance leads to confidence, which leads to flows. The Bitcoin ETFs have held up well despite the correction.

Source: BOLDETF.com

In other big news, Morgan Stanley has joined the Bitcoin ETF rush, launching MSBT perhaps as early as next week. That’s the first major investment bank with a broad reach in the financial world to launch an ETF. The others have been asset managers, and this is a mega bank that acts for the big money.

Source: Bloomberg

Morgan Stanley has a massive wealth management network with 16,000 financial advisors overseeing $6.2 trillion. Many high-net-worth clients already allocate to crypto, as the firm has recommended 2–4% portfolio exposure in the past, but they often go to competitor ETFs. By offering a proprietary product, advisors can recommend MSBT directly without sending assets and associated fees to rivals. This keeps client relationships, trading activity, and revenue in-house.

The ETF is priced at a 0.14% annual fee, the lowest among U.S. spot Bitcoin ETFs. They have also filed for a Solana ETF and are exploring staked Ethereum products.

Bitcoin keeps moving forward, and the big money is yet to come.

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