Key Takeaways
- • Morgan Stanley has filed amended S-1 registration statements with the SEC for spot Ethereum and Solana ETFs, disclosing a 0.14% annual sponsorship fee—the lowest in both ETH and SOL ETF markets globally, undercutting Grayscale's Mini Ethereum Trust (0.15%) and Franklin Templeton's SOEZ (0.19%).
- • Both proposed funds will incorporate staking arrangements, with Figment and Galaxy Blockchain Infrastructure selected as staking providers, allowing investors to earn staking rewards alongside price exposure while custodians retain 5% of staking fees and 95% flows to the fund.
- • The amended filings represent Morgan Stanley's second regulatory revision since the original January 2026 application, signaling active SEC engagement; proposed ticker symbols are MSOL (Solana) and MSSE (Ethereum), with final launch contingent on regulatory approval timelines.
- • This development accelerates Morgan Stanley's institutional crypto infrastructure push, positioning the bank to capture institutional demand for low-cost, yield-generating crypto exposure as regulatory clarity improves.
Summary
Morgan Stanley has advanced its cryptocurrency exchange-traded fund strategy by submitting amended S-1 registration statements to the Securities and Exchange Commission for both Ethereum and Solana ETFs. The amended filings, submitted on Thursday, disclose a 0.14% annual sponsorship fee for each fund—a competitive positioning that Bloomberg ETF analyst Eric Balchunas identified as the lowest rate available in either market globally. This pricing undercuts existing competitors, including Grayscale's Mini Ethereum Trust at 0.15% and Franklin Templeton's SOEZ, the current lowest-cost Solana option, at 0.19%.
The amended filings introduce a significant product differentiation feature: integrated staking arrangements designed to generate additional returns for shareholders. Morgan Stanley has selected Figment and Galaxy Blockchain Infrastructure as staking service providers. Under the fund structure, custodians will receive 5% of staking rewards for their services, with the remaining 95% retained within the funds for investor benefit. This dual-return mechanism—combining price appreciation exposure with staking yield—positions the products as more comprehensive institutional solutions than standard passively held cryptocurrency trusts.
This represents Morgan Stanley's second amended filing since the original January 2026 application, indicating sustained regulatory engagement with the SEC. The progression suggests constructive dialogue with federal regulators, though final product launches remain contingent on SEC approval timelines. If greenlighted, the Ethereum ETF will trade under ticker MSSE, while the Solana fund will operate under MSOL. The development reflects Morgan Stanley's broader institutional cryptocurrency infrastructure expansion and capitalizes on an increasingly favorable regulatory environment for spot crypto products among qualified institutional investors.
The amended filings introduce a significant product differentiation feature: integrated staking arrangements designed to generate additional returns for shareholders. Morgan Stanley has selected Figment and Galaxy Blockchain Infrastructure as staking service providers. Under the fund structure, custodians will receive 5% of staking rewards for their services, with the remaining 95% retained within the funds for investor benefit. This dual-return mechanism—combining price appreciation exposure with staking yield—positions the products as more comprehensive institutional solutions than standard passively held cryptocurrency trusts.
This represents Morgan Stanley's second amended filing since the original January 2026 application, indicating sustained regulatory engagement with the SEC. The progression suggests constructive dialogue with federal regulators, though final product launches remain contingent on SEC approval timelines. If greenlighted, the Ethereum ETF will trade under ticker MSSE, while the Solana fund will operate under MSOL. The development reflects Morgan Stanley's broader institutional cryptocurrency infrastructure expansion and capitalizes on an increasingly favorable regulatory environment for spot crypto products among qualified institutional investors.
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