Morgan Stanley is expanding its digital assets business beyond Bitcoin to include Ethereum and Solana. The company’s investment management division has recently launched two spot ETPs that, in addition to tracking the price of the underlying assets, will allocate a portion of holdings to staking and distribute the resulting yields to investors.
Two products launching simultaneously
These two products are the Morgan Stanley Ethereum Trust and the Morgan Stanley Solana Trust, trading under the tickers MSSE and MSOL on NYSE Arca. Morgan Stanley stated that both funds will have an expense ratio of 0.14%.
The company stated that the products will track the price performance of Ethereum and Solana respectively, while staking a portion of the holdings. The resulting staking rewards will be passed directly to investors.
Expanded from Bitcoin to more crypto assets
This launch continues Morgan Stanley’s ongoing strategy in digital assets this year. The company launched a spot Bitcoin trust product in April. According to company disclosures, as of July 16, the product’s assets under management exceeded $381 million.
Morgan Stanley also stated that its ETF and ETP platform currently covers 22 products with a combined assets under management exceeding $14 billion. Ally Wallace, Global Head of ETFs at the company, said the new offering is a natural extension of its digital assets product line, aiming to provide investors with simplified exposure to crypto assets through ETPs.
Multiple cryptocurrency initiatives have been advanced this year.
In addition to fund products, Morgan Stanley has also been advancing more blockchain-related businesses this year. In April, company management stated that it is exploring tokenized money market funds, digital asset tax management strategies offered through its subsidiary Parametric, and other blockchain-based products.
After entering July, Morgan Stanley, in partnership with Zero Hash, made spot trading available for Bitcoin, Ethereum, and Solana to eligible E*TRADE clients. These clients can now buy, sell, and hold digital assets on the same platform, managing them alongside traditional investment products such as stocks.
From a product perspective, this Wall Street institution is seeking to expand its cryptocurrency services beyond a single Bitcoin offering to include multi-asset allocation and trading scenarios. The launch of spot ETPs for Ethereum and Solana also indicates that major asset managers are continuing to explore pathways that combine staking yields with traditional trading products.