Morgan Stanley Investment Management has launched spot Ethereum and Solana exchange traded products that integrate staking from their first day of trading.
The Morgan Stanley Ethereum Trust, trading under MSSE, and Morgan Stanley Solana Trust, trading under MSOL, began trading today on NYSE Arca.
Both funds charge an expense ratio of 0.14%, making them the cheapest products in their respective categories, according to Bloomberg ETF analyst Eric Balchunas.
The funds seek to track the prices of Ethereum and Solana through CoinDesk benchmark rates while staking a portion of their underlying assets to generate additional rewards.
MSSE generally intends to stake between 50% and 80% of its Ethereum holdings. MSOL may stake up to 100% of its Solana holdings, although the proportions may change over time.
Morgan Stanley expects approximately 95% of the staking rewards to pass through to shareholders. The asset manager said it will not retain any portion of the rewards for itself.
Figment, an institutional staking infrastructure provider, was selected to operate the validators and manage staking for both funds.
The companies said the products are the first spot Ethereum and Solana ETPs from a major US bank affiliated asset manager to include staking from launch.
“MSSE and MSOL extend what we started with MSBT to the two largest Proof of Stake networks, with staking integrated from day one,” said Ally Wallace, global head of ETFs at Morgan Stanley Investment Management.
Wallace said clients want access to digital assets through familiar investment structures while still participating in the rewards generated by blockchain networks.
The funds allow investors to gain Ethereum and Solana exposure and receive staking rewards through standard brokerage accounts. Shareholders do not need to manage private keys, validators, or onchain reward reporting.
Morgan Stanley’s new products follow the launch of the Morgan Stanley Bitcoin Trust earlier this year. The Bitcoin fund has accumulated approximately $400 million in assets within four months, according to Balchunas.
Morgan Stanley reported that the fund held more than $381 million in assets as of July 16.
“Good sign,” Balchunas said, noting that the Bitcoin product reached that level despite launching during a difficult period for the crypto ETF market.
The Ethereum and Solana launches bring Morgan Stanley’s digital asset ETP lineup to three products covering Bitcoin, Ethereum, and Solana.
Morgan Stanley Investment Management entered the ETF market in 2023. Its wider ETF and ETP business now manages more than $14 billion across 22 products.