Morgan Stanley Unleashes Low-Fee Ether and Solana ETPs with Staking

Morgan Stanley has launched two new exchange-traded products (ETPs) that track ether and solana, expanding its digital asset lineup. The Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL) began trading on NYSE Arca on July 28 with an annual expense ratio of 0.14%, undercutting competing funds in their respective categories.

These new products offer staking, which allows the company to earn rewards from the Ethereum and Solana networks without retaining any share of those rewards. This means that the benefits will flow back into the products, potentially improving returns. However, it also introduces risks such as assets becoming temporarily unavailable during network entry and exit periods or validator errors resulting in penalties known as slashing.

Morgan Stanley expects to stake less than the trusts' full holdings due to these risks. The company's head of digital asset strategy, Amy Oldenburg, stated that 'digital assets are becoming an increasingly important component of diversified investment portfolios.'

The launches follow the Morgan Stanley Bitcoin Trust, which accumulated over $400 million in cumulative net flows by July 27. Morgan Stanley's exchange-traded product business now oversees more than $14 billion across 22 products. Bloomberg Intelligence analyst Eric Balchunas described the new funds as the most significant ether and solana launches since the first products entered the market.

Morgan Stanley's large adviser network, with roughly 16,000 financial advisers, gives the funds access to a distribution network few crypto-native issuers can match. This entry is about more than just two new tickers; it combines low fees, staking income, and a vast wealth-management channel, forcing the crypto fund market into a new phase of competition.