Morgan Stanley Crashes Crypto ETF Market with $7.4 Trillion in Client Assets

Morgan Stanley has entered the Ethereum and Solana exchange-traded products market with two new funds, generating $38 million in combined trading volume on their first day. The Morgan Stanley Ethereum Trust (MSSE) recorded 933,715 shares traded, attracting $5.15 million of net inflows, while the Morgan Stanley Solana Trust (MSOL) traded 951,216 shares, producing roughly $19 million of turnover but no net creations.

The new products have been met with significant interest, with MSSE's inflows representing more than a third of the roughly $14.5 million that entered US ETH funds during the session. BlackRock's staking-enabled ETHB drew $5.9 million, and its larger ETHA product added $3.5 million.

Morgan Stanley has undercut rivals on fees, with MSSE and MSOL each carrying a 0.14% annual sponsor fee. The firm will also take no direct share of their staking rewards, while custodians and staking providers are expected to receive an aggregate 5% of gross rewards.

Despite the lower costs, Morgan Stanley still has a substantial gap to close against funds that have spent months or years accumulating assets and liquidity. However, the firm's size and reach may give it an advantage in capturing market share, with almost 16,000 financial advisers overseeing about $2.6 trillion in combined client assets.

Morgan Stanley's broader Wealth Management business ended 2025 with $7.4 trillion in client assets and more than 20 million client relationships. The firm has also identified crypto and tokenization among the product capabilities it intends to expand as more customers move between its E*TRADE, workplace, and adviser-led channels.