Morgan Stanley has officially entered the spot crypto ETF market with the launch of the Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL) on NYSE Arca. The two funds stand out not only for their 0.14% annual expense ratio, the lowest among U.S. Ethereum and Solana ETFs. They also offer staking rewards.
According to Ally Wallace, Global Head of ETFs at Morgan Stanley Investment Management (MSIM), the products are designed to give investors both price exposure and staking income.
Historically, Ethereum staking has generated around 2.8% annually, while Solana staking has delivered between 6% and 8%. Instead of keeping a share, Morgan Stanley passes 100% of staking rewards directly to investors.
Lowest Fees in the Market
The pricing immediately puts Morgan Stanley ahead of competitors. Grayscale’s Mini Ethereum Trust previously offered the lowest Ethereum ETF fee at 0.15%. Meanwhile, Franklin Templeton’s SOEZ charged 0.19% for its Solana ETF. Bloomberg ETF analyst Eric Balchunas described Morgan Stanley’s pricing as the cheapest available for both Ethereum and Solana products.
For investors, the fee works out to roughly $14 annually for every $10,000 invested. Morgan Stanley covers most routine operating expenses through the sponsor fee.
How MSSE and MSOL Differ
Although both ETFs share the same fee structure, their staking strategies differ.
MSSE may stake 50% to 80% of its Ethereum holdings, provided there are no legal or tax concerns. The fund remains passive, meaning it does not actively trade Ether or use leverage and derivatives.
MSOL, meanwhile, can stake up to 100% of its Solana holdings, giving investors greater exposure to staking rewards. Morgan Stanley confirmed it will not retain any staking income earned by either ETF.
Who’s doing the Heavy Lifting?
The staking infrastructure will be handled by Figment, Galaxy, and Coinbase Canada, while provider fees are capped at 5%. Ethereum assets are secured by The Bank of New York Mellon and Coinbase Custody Trust Company. Both ETFs track CoinDesk’s 4 PM New York Settlement Benchmarks. MSIM serves as delegated sponsor and Foreside Fund Services acts as the marketing agent.
The products also benefit from Revenue Procedure 2025-31. This allows proof-of-stake ETFs to distribute staking rewards without creating additional tax implications if custody, staking, and disclosure requirements are satisfied.
Bitcoin Opened the Door
The launches follow the Morgan Stanley Bitcoin Trust (MSBT), which debuted earlier this year with $34 million in first-day trading volume and more than $381 million in assets under management by July 16. Wallace added that MSIM’s ETF and ETP platform now oversees 22 products managing more than $14 billion. This total includes three digital asset ETPs.
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