Morgan Stanley's Ethereum Trust Hits Market with Low-Cost Ether Exposure

Morgan Stanley, one of Wall Street's biggest names, has launched its Ethereum Trust (NYSEARCA:MSSE) on July 28, 2026. This is a spot ether exchange-traded fund that allows everyday investors to hold ether, the second-largest cryptocurrency, inside an ordinary brokerage or retirement account.

The MSSE carries an expense ratio of 0.14%, or roughly $14 per year on a $10,000 investment. Morgan Stanley's Bitcoin trust gathered about $400 million in its first four months, and this new product is expected to follow suit. The fund is sponsored by Morgan Stanley Investment Management and trades on NYSE Arca.

The MSSE is a grantor trust that holds ether and passes the economics of that holding through to shareholders. According to the prospectus, the fund's objective is to track the performance of ether as measured by the CoinDesk Ether Benchmark 4PM NY Settlement Rate, adjusted for expenses and staking rewards.

The MSSE has some features that set it apart from a plain ether tracker. It is a passive vehicle, meaning the sponsor will not speculatively buy or sell ether, and the trust does not use leverage, derivatives, or similar arrangements. Additionally, the sponsor can stake a portion of the trust's ether if it decides doing so does not create legal or tax risk.

The risks are substantial, as ether itself has been volatile. At roughly $1,880 on July 28, 2026, the token is down about 36.62% year to date and 50.51% over the past year. Bitcoin has fared better recently, down 27.28% year to date at around $63,630.