Morgan Stanley has launched two new spot digital asset products on NYSE Arca, offering investors access to Ethereum and Solana with a 0.14% fee, the lowest in their categories. The Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL) also feature staking strategies that generate network rewards for shareholders.

Details on the New Trusts and Fees

The MSSE and MSOL funds come with fees that undercut competitors like Grayscale’s Mini Ethereum Trust, which charges 0.15%, and Franklin Templeton’s Solana fund at 0.19%, based on SoSoValue data. MSSE tracks the CoinDesk Ether Benchmark 4PM NY Settlement Rate while MSOL follows the equivalent Solana rate. Together with a Bitcoin product, Morgan Stanley now offers three digital asset options under its ETF and ETP business managing over $14 billion across 22 funds.

These trusts don’t just hold assets they stake them. MSSE plans to stake between 50% and 80% of its Ethereum holdings, while MSOL can stake up to 100% of its Solana. Staking rewards are paid out to shareholders either monthly or quarterly in cash form, rather than compounding inside the funds. The firm named Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada as the staking partners, and Morgan Stanley will not keep any of the staking rewards itself.

Market Impact and Industry Perspective

Bloomberg senior ETF analyst Eric Balchunas called this launch the largest for spot Ethereum and Solana funds since the original ones hit the market, highlighting Morgan Stanley’s network of roughly 16,000 financial advisors who manage client assets totaling about $7 trillion. This level of distribution could drive significant inflows to these new products.

Morgan Stanley’s spot Bitcoin fund, which debuted in April with $34 million on day one and charges the same 0.14% fee, recently held nearly $390 million in assets, a strong performance given the bear market conditions. This hints at investor confidence building around Morgan Stanley’s digital asset offerings.

This material is for informational purposes only and does not constitute financial advice.