Morgan Stanley Unveils Cheapest ETH and SOL ETFs with Staking Rewards
Morgan Stanley has entered the spot crypto ETF market with two new funds that offer staking rewards. The Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust MSOLUSD are listed on NYSE Arca, with an annual expense ratio of 0.14%, the lowest among U.S. Ethereum and Solana ETFs.
The funds allow investors to gain price exposure while also earning staking income from their investments. Ally Wallace, Global Head of ETFs at Morgan Stanley Investment Management MSIMUSD, stated that historically, Ethereum staking has generated around 2.8% annually, while Solana staking has delivered between 6% and 8%. The funds pass 100% of staking rewards directly to investors.
Morgan Stanley's pricing puts it ahead of competitors, including Grayscale's Mini Ethereum Trust, which previously offered the lowest Ethereum ETF fee at 0.15%, and Franklin Templeton's SOEZ, which charged 0.19% for its Solana ETF. Eric Balchunas, a Bloomberg ETF analyst, described Morgan Stanley's pricing as the cheapest available for both Ethereum and Solana products.