Morgan Stanley Passes Staking Rewards Straight to Shareholders

Morgan Stanley has taken an unprecedented approach to staking rewards in its new Ethereum and Solana exchange-traded funds (ETFs). The bank's Investment Management arm launched two new ETFs on July 28, which forward every dollar of staking yield straight to shareholders, keeping none beyond the standard management fee.

The Morgan Stanley Ethereum Trust (ticker: MSSE) and Morgan Stanley Solana Trust (ticker: MSOL) offer direct exposure to ether and SOL with a staking overlay. The sponsor fee sits at 0.14%, about as thin as expense ratios get in the ETF world, while 95% of gross staking rewards flow back to the trusts and ultimately to shareholders.

The remaining 5% goes to staking service providers like Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada, which also handle custody duties alongside BNY Mellon. This dual-custodian structure is preferred by larger institutional investors.