Morgan Stanley Launches Ethereum and Solana ETPs With Staking Rewards
Key Takeaways
- •Morgan Stanley launched the Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust on Tuesday.
- •Both products will track the prices of Ethereum and Solana, charge a 0.14% expense ratio, and pass staking rewards to investors.
- •Morgan Stanley said its ETF and ETP platform has grown to more than $14 billion across 22 products.
- •The firm’s April spot Bitcoin Trust had attracted more than $381 million in assets under management through July 16.
- •In July, Morgan Stanley began offering spot Bitcoin, Ethereum, and Solana trading for eligible E*TRADE customers through Zero Hash.
Morgan Stanley Investment Management is expanding beyond Bitcoin with the launch of Ethereum and Solana exchange-traded products that will generate staking rewards for investors, the latest step in the Wall Street firm's growing push into digital assets.
Announced on Tuesday, the Morgan Stanley Ethereum Trust (NYSE Arca: MSSE) and Morgan Stanley Solana Trust (NYSE Arca: MSOL) will track the price of Ethereum and Solana, respectively. The company said each fund will charge a 0.14% expense ratio, stake a portion of its holdings, and pass any staking rewards through to investors.
“Since introducing our first ETFs in 2023, we've built a diversified suite of ETFs and ETPs that now exceed $14 billion in assets under management,” Ally Wallace, Global Head of ETFs for Morgan Stanley Investment Management, said in a statement. “The addition of MSSE and MSOL reflects the natural evolution of our product suite, which seeks to provide simplified access to digital assets through the ETP wrapper.”
The launch follows Morgan Stanley's April introduction of its spot Bitcoin Trust. According to the company, the fund had attracted more than $381 million in assets under management through July 16, while its ETF and ETP platform had grown to more than $14 billion across 22 products. The addition of Ethereum and Solana products also broadens access beyond Bitcoin at a time when staking has become a defining feature of some proof-of-stake assets, making the reward structure part of the product design rather than a separate on-chain activity for investors to manage themselves.
The new products are the latest crypto initiative Morgan Stanley has announced this year. In April, Morgan Stanley executives said the firm was exploring tokenized money market funds, digital asset tax-management strategies through its subsidiary Parametric, and other blockchain-based products.
“We’re not going to stop at just Bitcoin,” Amy Oldenburg, head of digital-asset strategy at Morgan Stanley, previously told Decrypt. “It’s really about the longer-term journey, and there’s quite a long way to go.”
In July, Morgan Stanley rolled out spot Bitcoin, Ethereum, and Solana trading for eligible E*TRADE customers through a partnership with Zero Hash, allowing clients to buy, sell, and hold digital assets alongside stocks and other investments.