Morgan Stanley Enters Ethereum and Solana with Low-Fee ETFs

Morgan Stanley has expanded its cryptocurrency offerings with two new exchange-traded products linked to Ethereum and Solana. The Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL) began trading on NYSE Arca, using the respective tickers. Both products track benchmarks for their respective assets' native tokens.

The MSSE follows the CoinDesk Ether Benchmark 4PM NY Settlement Rate, while MSOL tracks the equivalent benchmark for SOL. Notably, both trusts charge an annual expense ratio of 0.14%, marking one of the lowest fees on the market.

Investors can buy shares without directly managing crypto wallets or private keys, providing indirect exposure to these digital assets through traditional brokerage accounts. The trusts will also stake part of their holdings to earn blockchain rewards, with plans to commit between 50% and 80% of ether for MSSE and up to 100% of SOL for MSOL.

Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada have partnered to provide staking services. Custodians and providers will retain 5% of gross rewards, with the remaining amount staying with the trusts. However, Morgan Stanley Investment Management will not receive any portion of these rewards.