Morgan Stanley Launches Cheapest ETH and SOL ETFs with Staking Rewards

Morgan Stanley has entered the spot crypto ETF market with two new funds: Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL). The ETFs are listed on NYSE Arca and offer investors exposure to both price movements and staking income. This is a unique feature, as most ETFs only provide price exposure.

The MSSE and MSOL funds have an annual expense ratio of 0.14%, the lowest among U.S. Ethereum and Solana ETFs. Historically, Ethereum staking has generated around 2.8% annually, while Solana staking has delivered between 6% and 8%. Morgan Stanley passes 100% of staking rewards directly to investors.

The low fees make Morgan Stanley's products more attractive to investors. Grayscale's Mini Ethereum Trust previously offered the lowest Ethereum ETF fee at 0.15%, while Franklin Templeton's SOEZ charged 0.19% for its Solana ETF. Eric Balchunas, a Bloomberg ETF analyst, described Morgan Stanley's pricing as the cheapest available for both Ethereum and Solana products.