Morgan Stanley Enters Crypto ETF Market with Lowest-Fee Ethereum and Solana Funds

Morgan Stanley has expanded its presence in the spot crypto ETF market by launching two new funds: the Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL). The two products, listed on NYSE Arca, offer a unique combination of price exposure and staking income. With an annual expense ratio of 0.14%, they boast the lowest fees in the market.

The staking rewards generated by Ethereum and Solana are significant, with historical returns ranging from 2.8% to 8%. Morgan Stanley is passing these rewards directly to investors, rather than retaining them as a company. This approach sets the firm apart from its competitors, including Grayscale's Mini Ethereum Trust, which charged 0.15%, and Franklin Templeton's SOEZ, with a fee of 0.19%

The staking infrastructure for MSSE and MSOL will be handled by Figment, Galaxy, and Coinbase Canada, while provider fees are capped at 5%. The products track CoinDesk's 4 PM New York Settlement Benchmarks and benefit from Revenue Procedure 2025-31, which allows proof-of-stake ETFs to distribute staking rewards without creating additional tax implications.