Morgan Stanley Debuts Cheapest Ethereum and Solana ETFs with Staking Rewards

Morgan Stanley Investment Management has expanded its lineup of digital asset exchange traded products (ETPs) with the launch of two new funds that track Ethereum and Solana. The Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL) began trading on NYSE Arca, marking the first time a major US bank-affiliated asset manager has offered spot ETPs for these assets.

Both MSSE and MSOL have an expense ratio of 0.14%, making them the cheapest products in their respective categories. The funds seek to track the prices of Ethereum and Solana through CoinDesk benchmark rates while staking a portion of their underlying assets to generate additional rewards.

The Morgan Stanley Ethereum Trust generally intends to stake between 50% and 80% of its Ethereum holdings, while the Morgan Stanley Solana Trust may stake up to 100% of its Solana holdings. The asset manager expects approximately 95% of the staking rewards to pass through to shareholders.

Figment, an institutional staking infrastructure provider, was selected to operate the validators and manage staking for both funds. This move follows the launch of the Morgan Stanley Bitcoin Trust earlier this year, which has accumulated approximately $400 million in assets within four months.