Morgan Stanley Rolls Out Ethereum and Solana ETPs with Staking

Morgan Stanley has launched two new exchange-traded products (ETPs) that track Ethereum and Solana, with staking capabilities. The Morgan Stanley Ethereum Trust trades under MSSE, while the Solana Trust uses MSOL. Both ETPs charge a 0.14% fee and will stake part of their underlying holdings to earn rewards.

The main benefit of these products is easier access for investors, who can gain exposure through a conventional brokerage account without managing private keys or choosing a validator. This structure may be particularly useful for financial advisers and institutions whose internal rules permit exchange-traded securities but restrict direct cryptocurrency custody.

The staking rewards are not fixed or guaranteed and depend on network conditions, validator performance, and how much of the trust's holdings can be staked while maintaining enough liquidity for redemptions. Morgan Stanley will retain none of the staking rewards, with custodians and staking providers deducting a 5% service fee equal to gross rewards.

Investors benefit from staking without operating their own validator, but the service-provider deduction reduces the amount they ultimately receive. Shareholders do not directly own ETH or SOL and cannot transfer the assets to a personal wallet or use them in decentralized finance.