Key Takeaways
- Morgan Stanley submitted updated S-1 filings with the Securities and Exchange Commission for Ethereum and Solana exchange-traded funds
- Each product features a 0.14% annual management fee — establishing a new low benchmark in their categories
- Ninety-five percent of staking income will flow to the funds, with only 5% allocated to service providers and custodians
- Trading symbols will be MSSE for Ethereum and MSOL for Solana
- The firm’s Bitcoin ETF, which debuted in April, has accumulated $300.7 million in net inflows to date
Morgan Stanley has submitted revised S-1 registration documents to the Securities and Exchange Commission for a pair of cryptocurrency exchange-traded funds — one focused on Ethereum, the other on Solana. These represent the second round of amendments for both applications, initially filed in January.
This strategic expansion builds on the financial institution’s April launch of a Bitcoin ETF, which has generated cumulative net inflows totaling $300.7 million through June 18.
Industry’s Most Competitive Fee Structure
The Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust will each implement a 0.14% annual sponsor fee. This charge is computed on a daily basis and deducted monthly from the net asset value of each fund.
At 0.14%, these products undercut all current market competitors. Grayscale’s Mini Ethereum Trust currently assesses a 0.15% fee, while Franklin Templeton’s Solana ETF charges 0.19%. Morgan Stanley’s Bitcoin ETF also debuted with the same 0.14% fee structure, positioning it below competing offerings.
The Ethereum product will list under ticker symbol MSSE, while the Solana fund will use MSOL.
Staking Mechanics and Revenue Distribution
Both investment vehicles intend to stake portions of their cryptocurrency assets to generate supplementary returns for shareholders.
For the Ethereum product, custodial partners will deploy ETH into staking smart contracts. Validator operations will be managed by designated staking service providers acting on the trust’s behalf. The roster of staking partners includes Figment Inc., Galaxy Blockchain Infrastructure, and Coinbase Canada for both funds.
The fee arrangement allocates 5% of all staking proceeds to the combined group of staking service providers and custodians. The remaining 95% is retained within the fund structure, directly benefiting shareholders. The sponsor will not claim any portion of staking revenues beyond its standard management fee.
The Ethereum documentation acknowledges slashing risk associated with staked ETH. This mechanism allows for the removal of ETH from a validator’s balance if network protocols are violated or validator performance falls short.
According to data from May 18, 2026, approximately 3.64 million ETH awaited activation on validators. Ethereum’s protocol restricts new validator activations to 56 per epoch, translating to approximately 57,600 ETH daily. This creates an anticipated waiting period of roughly 63 days before newly staked ETH begins generating rewards.
The Solana documentation employs a comparable staking framework but does not specify a maximum daily staking threshold. Custodians handling staked SOL for the Solana fund will not maintain custody of private keys for staked tokens.
Current Status and Future Outlook
The submission of subsequent amendments typically indicates ongoing dialogue with SEC personnel and suggests progress toward approval.
Morgan Stanley has also attracted attention regarding a potential XRP ETF filing. The institution recently revealed holdings in existing XRP ETFs, prompting market speculation about a forthcoming application.
The SEC recently greenlit BlackRock’s Bitcoin Premium Income ETF, which commenced trading on June 16.
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