Key Takeaways
- Morgan Stanley amended ETH and SOL ETF filings, setting a low 0.14% sponsor fee.
- MSSE and MSOL could pressure rivals, undercutting Grayscale’s 0.15% ETH fee.
- Figment, Galaxy, and Coinbase Canada may stake assets, with 5% rewards allocated.
Morgan Stanley Expands Crypto ETF Push With Low-Cost Ethereum and Solana Funds
Morgan Stanley is moving closer to launching spot ethereum and solana exchange-traded funds (ETFs) after filing new amendments with the U.S. Securities and Exchange Commission.
The Wall Street bank submitted amended S-1 registration statements on Thursday, June 18, for both products. The filings mark the second amendments for the ETH and SOL ETF applications, which were first filed in January.
The latest documents show that each fund would charge a 0.14% sponsor fee. If launched at that rate, Morgan Stanley’s products would undercut current fee leaders in both markets.
Grayscale’s Mini Ethereum Trust currently has the lowest fee among ethereum ETFs at 0.15%, while Franklin Templeton’s solana ETF has the lowest fee among Solana products at 0.19%.
The ethereum ETF is expected to trade under the ticker MSSE. The solana fund is expected to trade under MSOL.
Staking Providers Named in Filings
The amendments also revealed more details on how the funds will handle staking.
Figment Inc., Galaxy Blockchain Infrastructure LLC, and Coinbase Canada Inc. are listed as staking service providers. Morgan Stanley plans to stake a portion of the ether and solana held by the funds to generate additional rewards.
The filings said 5% of staking rewards would be paid to staking service providers and custodians.
That feature could help differentiate the funds in a crowded ETF market. Staking allows proof-of- stake assets such as ethereum and solana to earn network rewards, though it also adds operational and regulatory complexity.
For investors, the structure may offer a combination of spot price exposure and incremental yield. For issuers, staking is becoming one of the next battlegrounds in crypto ETF competition.
Amendments Signal Progress Toward Launch
Additional amendments often suggest active dialogue between an issuer and the SEC. They do not guarantee approval, but they usually indicate that the launch process is moving forward.
Morgan Stanley has already used pricing to gain traction in crypto ETFs. Its Morgan Stanley Bitcoin Trust (MSBT), launched in April with the same 0.14% sponsor fee, undercutting many established spot bitcoin funds. As of June 18, MSBT had attracted $300.7 million in cumulative net inflows.
The bank’s push into ethereum and solana funds shows how quickly large financial institutions are expanding beyond bitcoin. A low-fee strategy, combined with staking, could make Morgan Stanley a serious competitor as the next wave of crypto ETFs moves toward the market.
