Morgan Stanley Expands Crypto Offerings with Staking-Enabled ETPs for Ethereum and Solana

Morgan Stanley has expanded its cryptocurrency offerings by launching exchange-traded products (ETPs) for Ethereum and Solana, both of which come with integrated staking. The move is a significant step forward in institutional adoption of cryptocurrencies. The bank's ETPs will be listed on the NYSE Arca and have an expense ratio of 0.14%, which is competitive in the market.

The key feature of these ETPs is that they pass all staking rewards directly to investors, eliminating the need for technical management. This marks a significant improvement over the first spot Bitcoin ETFs, which offered no yield component at all.

Morgan Stanley's move follows its earlier launch of a Bitcoin ETP and rounds out its product suite covering the three largest cryptocurrencies by market capitalization. The bank's expansion into cryptocurrency offerings is part of a broader trend of institutional adoption, with several European banks also accelerating the rollout of blockchain infrastructure for tokenized settlements.

While the market remains cautious ahead of the Federal Reserve's monetary policy decision, Bitcoin and Ethereum have shown signs of recovery after a sharp pullback. However, volatility can resurface in either direction until the Fed delivers its verdict on rates.