Morgan Stanley Disrupts Crypto ETF Market with Industry-Leading Fees

Morgan Stanley has shaken up the crypto exchange-traded product market by launching two new funds with an industry-leading 0.14% annual expense ratio, undercutting every existing U.S. spot Ether and Solana ETF.

The Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL), which began trading on NYSE Arca on July 28, provide spot exposure to their respective digital assets while incorporating staking from launch.

This means investors can receive blockchain validation rewards without directly holding or staking tokens themselves. Approximately 95% of staking rewards are expected to be distributed to shareholders after validator and operational costs.

The launch is significant as it brings one of Wall Street's largest asset managers into the competition for Ethereum- and Solana-based investment products, putting pressure on competing issuers.