Morgan Stanley Launches Ether and Solana ETPs with Staking

What happened

On July 28, Morgan Stanley Investment Management listed two new spot crypto exchange-traded products on NYSE Arca: the Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL). Both funds charge an expense ratio of 14 basis points, among the lowest in the category. The trusts hold physical ETH and SOL tokens through institutional custodians and track CoinDesk benchmark pricing. A key feature is staking: MSSE plans to stake 50% to 80% of its ether holdings (earning roughly 1.7% annually), while MSOL intends to stake 100% of its solana holdings (earning approximately 3.4% annually). The funds return 95% of staking rewards to shareholders through periodic distributions, with the remaining 5% covering validator fees. This launch follows the firm's Bitcoin Trust, which debuted in April and has since gathered over $381 million in assets. Morgan Stanley's discount brokerage E*TRADE also recently enabled spot trading of Bitcoin, Ethereum, and Solana for its nearly 9 million customers, charging a 50-basis-point transaction fee.

Why it matters

The launch represents a significant expansion of Morgan Stanley's digital asset product suite, offering retail and institutional investors regulated exposure to two major cryptocurrencies alongside yield generation. The 0.14% fee undercuts many competitors, potentially driving inflows through Morgan Stanley's extensive wealth advisor network and direct-to-consumer channels. Amy Oldenburg, head of digital asset strategy at Morgan Stanley, noted that the firm's Bitcoin Trust attracted its first $200 million largely from self-directed trades, suggesting strong organic demand even before the sales force actively marketed the product. By combining spot exposure with staking rewards, Morgan Stanley aims to make crypto investing more appealing from a traditional finance perspective, lowering barriers for investors who prefer not to manage private keys or wallets. The firm's competitive pricing and integrated distribution-spanning wealth management, discount brokerage, and institutional channels-position it to capture market share as digital assets become a more routine part of diversified portfolios.

Bigger picture

Institutional interest in Solana has grown steadily, with investment funds from Fidelity, Franklin Templeton, and Invesco collectively managing over $1 billion in Solana-linked net assets. However, both Solana and Ethereum have faced headwinds: Solana is down more than 40% year-to-date, while Ethereum has fallen roughly 35%. Morgan Stanley's entry into staking-enabled ETPs reflects broader industry competition to offer yield-generating crypto products as traditional finance firms seek to differentiate beyond simple spot exposure. The firm's aggressive fee structure and staking pass-through signal a strategic push to establish brand leadership in regulated crypto products, particularly as other banks and asset managers weigh similar offerings. By launching during a market downturn, Morgan Stanley may be positioning itself to capture pent-up demand when sentiment improves, leveraging its 15,000-plus financial advisors and multi-million-customer retail platform.

What to watch

Monitor inflows into MSSE and MSOL during the initial weeks to gauge organic demand versus advisor-driven sales. Track whether Morgan Stanley's wealth management division begins actively positioning these products to clients, potentially accelerating asset growth. Watch for competitive responses from other asset managers on fees or staking features. Observe staking reward distribution schedules and actual yields versus projected rates of 1.7% for ether and 3.4% for solana. Finally, pay attention to broader crypto market sentiment and whether institutional adoption continues despite year-to-date price declines.