Morgan Stanley has launched low-cost exchange-traded products (ETPs) tracking Ethereum and Solana, becoming the first US bank-affiliated asset manager to offer such vehicles and stepping up fee pressure in the American crypto fund market.
Morgan Stanley Investment Management confirmed on Tuesday that the Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust are now trading on NYSE Arca under the tickers MSSE and MSOL. The products track the prices of Ether and SOL, the native asset of the Solana network, respectively.
Both ETPs charge an annual management fee of 0.14%, putting them among the cheapest US crypto exchange-traded products currently available. That fee is lower than the charges attached to many rival Ethereum and Solana offerings, potentially intensifying competition on price across the sector.
Although widely referred to as exchange-traded funds, Morgan Stanley officially categorises MSSE and MSOL as exchange-traded products. As with spot crypto ETFs, they hold underlying digital assets and allow investors to gain price exposure through conventional brokerage accounts, without handling crypto wallets or private keys themselves.
Staking built into structure
A key feature of the new products is the ability to stake part of their holdings to earn blockchain rewards. Staking involves committing tokens to help validate transactions and secure proof-of-stake networks such as Ethereum and Solana.
Regulatory filings show MSSE intends to stake between 50% and 80% of its Ether, while MSOL may stake up to 100% of its Solana holdings. Figment, Galaxy’s blockchain infrastructure business, and Coinbase Canada are listed as staking providers for the trusts.
Service providers and custodians will be able to retain up to 5% of the staking rewards, with the remainder flowing back to the funds. However, overall fund performance will still be driven largely by ETH and SOL price movements, and the use of staking introduces additional operational, liquidity and network risks for investors to weigh.
New option for US crypto exposure
The launch follows the completion of registration and listing procedures, with NYSE Arca approving the products after Morgan Stanley filed the required documentation with the US Securities and Exchange Commission.
MSSE and MSOL are the first Ethereum and Solana exchange-traded products to be issued by an asset manager tied to a US bank. Their arrival offers American investors another regulated route to gain exposure to crypto assets through taxable brokerage accounts and other eligible investment platforms, while still operating within traditional securities market infrastructure.
The development also marks a further expansion of Morgan Stanley’s digital asset range. Earlier this year, the firm introduced the Morgan Stanley Bitcoin Trust, which trades under the ticker MSBT. According to the asset manager’s product page, that Bitcoin vehicle held about $392m in net assets as of 24 July.
Broader digital asset push
Alongside its listed products, Morgan Stanley has been widening direct crypto access for retail customers. Through ETRADE, the bank now allows clients to buy and sell Bitcoin, Ethereum and Solana via accounts connected to crypto infrastructure provider Zerohash.
The institution has also applied to establish a national trust bank focused on digital assets, signalling longer-term ambitions in custody and related services.
Its presence in institutional crypto markets extends beyond its own offerings. LMAX Group recently appointed Morgan Stanley and KBW to explore a potential sale or public listing that could value the trading firm at up to $5bn. Options under consideration include a direct sale, a merger with a special purpose acquisition company, or an initial public offering, with a Nasdaq listing reportedly the preferred outcome.
Launch comes amid mixed crypto fund flows
Morgan Stanley’s move arrives at a choppy moment for US crypto investment products. Data from SoSoValue shows that US Bitcoin ETFs have just recorded three consecutive sessions of net outflows, following a previous seven-day run of inflows.
By contrast, Ethereum funds have attracted net inflows on six of the past eight trading days. Solana products have seen inflows on four days over the same period, with two sessions showing no net flows.
Those mixed figures have coincided with renewed weakness across the wider crypto market. Bitcoin has retreated after briefly retesting the $65,000 level, while ETH and SOL have also come under selling pressure as traders cut back on risk assets.
Despite the softer price environment, traditional financial institutions have continued to build out digital asset products. The early trading volumes and asset inflows into MSSE and MSOL will provide the first indication of whether Morgan Stanley’s brand, low headline fee and integrated staking model are enough to draw investors away from established rivals in the Ethereum and Solana space.
