Morgan Stanley Enters Crypto Market with Low-Cost ETPs for Ethereum and Solana

Morgan Stanley has entered the cryptocurrency market with two new exchange-traded products (ETPs) linked to Ethereum and Solana. The Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust began trading on NYSE Arca under the tickers MSSE and MSOL, respectively.

The ETPs have a low annual expense ratio of 0.14%, making them attractive options for investors looking to gain exposure to these popular cryptocurrencies. The funds hold digital assets and provide indirect market exposure through traditional brokerage accounts, allowing investors to buy shares without managing crypto wallets or private keys.

The trusts can stake part of their holdings to earn blockchain rewards. For Ethereum, the trust plans to stake between 50% and 80% of its ether, while the Solana product may stake up to 100% of its SOL. However, this also introduces operational and liquidity risks, including token unbonding, validator failures, and network disruptions that could reduce returns.

The launch follows Morgan Stanley's Bitcoin Trust, which traded over $381 million in assets through July 16. The firm described MSBT as the first crypto ETP from a US bank-affiliated asset manager, and its latest products extend that lineup across Bitcoin, Ethereum, and Solana.