Morgan Stanley Lowers Bar for Altcoin ETF Fees

Morgan Stanley has made its entry into the Ethereum and Solana exchange-traded fund market by launching two new funds that offer staking rewards. The ETH- and SOL-based funds, MSSE and MSOL respectively, have a sponsor fee of 0.14%, lower than Grayscale's Mini Ethereum Trust at 0.15% and Franklin Templeton's Solana ETF at 0.19%. Morgan Stanley cited data from SoSoValue to support this claim.

Bloomberg Senior ETF Analyst Eric Balchunas noted that the firm's bitcoin-based spot ETF has brought in approximately $400 million in four months, despite launching during a bearish market. The Ethereum and Solana funds are now part of Morgan Stanley's diversified suite of ETFs and ETPs, which exceeds $14 billion in assets under management.

Morgan Stanley's Global Head of ETFs Ally Wallace said that the addition of these new funds reflects the natural evolution of their product suite. The firm will stake a share of the funds' ETH and SOL holdings to earn staking rewards.