Morgan Stanley continues to expand its commitment to digital assets, announcing the launch of two new exchange-traded products (ETPs): the Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL), both of which are now available for trading on NYSE Arca.
This move follows the success of its Bitcoin Trust, which has attracted nearly $400 million in assets, and reinforces the firm’s strategy of offering regulated vehicles that allow institutional and retail investors to access the crypto market without having to directly manage cryptocurrencies.
One of the most notable aspects of the new funds is that they do not merely track the price of ETH and SOL. Morgan Stanley has incorporated a staking strategy, which will allow investors to earn additional returns generated by validating blockchain networks.
In the case of MSSE, between 50% and 80% of the fund’s ETH holdings will be staked. For MSOL, the allocation could reach up to 100% of the Solana holdings. Additionally, the company stated that it will distribute 95% of the staking rewards to investors, rather than retaining that income.
Both products share a management fee of 0.14%, a competitive rate within the cryptocurrency ETF market. According to Morgan Stanley, the goal is to combine direct exposure to asset prices with an additional source of returns without significantly increasing costs for clients.
Morgan Stanley’s Crypto Strategy
The launch also complements the firm’s broader digital strategy. Just a few weeks ago, Morgan Stanley enabled spot trading of Bitcoin, Ethereum, and Solana on E*TRADE for eligible clients. As a result, the firm now offers an ecosystem that combines spot trading, brokerage services, and exchange-traded funds backed by digital assets.
The addition of staking reflects an increasingly visible trend among large asset managers. After years in which cryptocurrency-linked financial products focused solely on replicating price movements, institutions are now seeking to also capture the revenue generated by networks such as Ethereum and Solana.
That said, this strategy is not without risks. Staking involves relying on the operation of validators and exposes funds to events such as network outages or penalties (slashing), although Morgan Stanley maintains that its custody and management model aims to minimize such scenarios.
With Bitcoin, Ethereum, and Solana already covered by regulated products, Morgan Stanley is consolidating its presence in the digital asset market and intensifying competition among major asset managers to attract institutional capital to the leading blockchain networks.
