Morgan Stanley Passes on Staking Rewards, Hands Them Directly to Shareholders

Morgan Stanley Investment Management has launched two new exchange-traded products on July 28, offering investors direct exposure to Ethereum and Solana with a staking overlay. The Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL) began trading on NYSE Arca, allowing investors to participate in proof-of-stake assets.

The sponsor fee for these ETFs sits at 0.14%, which is relatively low compared to the industry standard. Of the gross staking rewards generated, 95% flows back to the trusts and ultimately to shareholders, while the remaining 5% goes to staking service providers and custodians who handle the operational work.

The staking providers include Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada, with custody duties split between BNY Mellon and Coinbase. MSSE will stake between 50% and 80% of its ether holdings, while MSOL targets up to 100% of its SOL holdings for staking.