Morgan Stanley launches ETH, Solana ETFs at 0.14%

Morgan Stanley Investment Management has launched exchange-traded products tracking Ethereum and Solana, expanding the Wall Street bank’s digital asset lineup beyond Bitcoin.

Morgan Stanley launches MSSE and MSOL

Morgan Stanley Investment Management announced the launch of the Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust on Tuesday. The products trade on NYSE Arca under the tickers MSSE and MSOL, respectively.

MSSE seeks to track the performance of Ether, while MSOL follows SOL, the native asset of the Solana network. Both products charge an annual management fee of 0.14%, placing them among the lowest-cost US crypto exchange-traded products.

The launch followed the completion of the funds’ registration and listing process. NYSE Arca approved the products after Morgan Stanley submitted the required filings to the US Securities and Exchange Commission.

Although commonly described as ETFs, Morgan Stanley officially classifies MSSE and MSOL as exchange-traded products. Like spot crypto ETFs, they hold digital assets and allow investors to gain price exposure through traditional brokerage accounts without managing wallets or private keys.

Staking adds another source of returns

Both products can stake a portion of their holdings to earn blockchain rewards. Staking involves committing tokens to help validate transactions and secure a proof-of-stake network.

Regulatory filings show that MSSE plans to stake between 50% and 80% of its Ether. MSOL may stake up to 100% of its Solana holdings. Figment, Galaxy’s blockchain infrastructure business, and Coinbase Canada are listed among the staking providers.

Service providers and custodians will retain up to 5% of the staking rewards, with the remaining rewards allocated to the funds. However, returns will still depend largely on ETH and SOL price movements, while staking introduces additional operational, liquidity, and network risks.

Morgan Stanley’s entry could increase fee pressure across the US crypto fund market. Its 0.14% charge is below the management fees attached to many competing Ethereum and Solana products, although investors must also consider tracking differences and how each issuer distributes staking income.

US investors gain bank-backed crypto access

MSSE and MSOL are the first Ethereum and Solana exchange-traded products issued by an asset manager affiliated with a US bank. Their arrival gives US investors another regulated route to gain crypto exposure through taxable brokerage and eligible investment accounts.

Morgan Stanley entered the market earlier this year with the Morgan Stanley Bitcoin Trust, which trades under the MSBT ticker. The Bitcoin product held about $392 million in net assets as of July 24, according to the asset manager’s product page.

The bank has also expanded direct crypto access through E*TRADE, allowing customers to buy and sell Bitcoin, Ethereum, and Solana through accounts linked to crypto infrastructure provider Zerohash. Morgan Stanley has separately applied to establish a national trust bank focused on digital assets.

Its role in institutional crypto markets also extends beyond its own products. LMAX Group recently appointed Morgan Stanley and KBW to examine a potential sale or public listing that could value the trading company at up to $5 billion. LMAX is considering a direct sale, a special purpose acquisition company merger, or an initial public offering, with a Nasdaq listing reportedly its preferred route.

Crypto ETF flows remain uneven

Morgan Stanley’s launch comes during an uneven period for US crypto funds. Bitcoin ETFs have recorded three consecutive sessions of net outflows following a seven-day inflow streak, according to SoSoValue data.

Ethereum funds have posted net inflows on six of the past eight trading days. Solana products recorded four inflow days over the same period, alongside two sessions with no net flows.

Those mixed figures coincide with renewed weakness across the crypto market. Bitcoin pulled back after retesting the $65,000 level, while ETH and SOL also faced selling pressure as traders reduced exposure to risk assets.

The launch nevertheless broadens Morgan Stanley’s crypto offering during a period when traditional financial companies continue building digital asset products despite weaker prices. Initial trading volumes and asset inflows into MSSE and MSOL will show whether the bank’s brand, low fee, and staking structure can attract investors from established rivals.