Key Takeaways
- Morgan Stanley submitted updated S-1 filings with the SEC for both Ethereum and Solana exchange-traded funds
- Each fund features a 0.14% yearly sponsor fee — undercutting every competitor in their respective categories
- Investors will receive 95% of all staking rewards, with service providers and custodians splitting the remaining 5%
- The funds will list under tickers MSSE for Ethereum and MSOL for Solana
- The firm’s Bitcoin ETF debut in April has accumulated $300.7 million in total net inflows
Morgan Stanley has submitted revised S-1 registration documents to the Securities and Exchange Commission for a pair of cryptocurrency ETFs — one focused on Ethereum, the other on Solana. These latest submissions represent the second round of amendments for both applications, initially filed back in January.
This development comes on the heels of the financial institution’s April Bitcoin ETF debut, which has garnered $300.7 million in total net inflows through June 18.
Industry-Leading Fee Structure
The Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust will each impose an annual sponsor fee of just 0.14%. This charge is assessed on a daily basis and deducted monthly from the net asset value of each fund.
At 0.14%, Morgan Stanley has established the most competitive pricing in both market segments. By comparison, Grayscale’s Mini Ethereum Trust carries a 0.15% expense ratio, while Franklin Templeton’s Solana ETF charges 0.19%. Morgan Stanley’s [[LINK_START_0]]Bitcoin[[LINK_END_0]] offering also debuted with the same 0.14% fee, positioning it below competing products.
Investors will find the Ethereum product trading as MSSE, while the Solana fund will use the ticker MSOL.
Staking Mechanism Explained
Both investment vehicles intend to stake portions of their digital asset holdings to generate supplementary returns for shareholders.
In the Ethereum trust’s case, custodians will deploy ETH into staking smart contracts. Third-party staking service providers will then operate validators representing the trust. Figment Inc., Galaxy Blockchain Infrastructure, and Coinbase Canada have been designated as staking service providers for both products.
Service providers and custodians will jointly claim 5% of all staking income generated. The other 95% remains within the fund for investor benefit. Importantly, the sponsor won’t collect any portion of staking proceeds beyond its regular management fee.
The Ethereum documentation acknowledges slashing risk associated with staked ETH. This refers to the potential for ETH to be deducted from a validator’s balance if protocol violations occur or validator performance falls short.
As of May 18, 2026, approximately 3.64 million ETH sat in queue awaiting validator activation. Ethereum restricts new validator additions to 56 per epoch, translating to about 57,600 ETH daily. This creates an anticipated waiting period of roughly 63 days before freshly staked ETH begins generating rewards.
The Solana documentation employs a comparable staking framework but doesn’t specify a daily staking cap. Custodians handling staked SOL for the Solana fund won’t maintain control of private keys for those tokens.
Current Status
The submission of subsequent amendments typically signals ongoing dialogue with SEC personnel and suggests the approval process is advancing.
Market observers are also monitoring Morgan Stanley for a potential XRP ETF filing. The institution recently revealed holdings in existing XRP ETFs, sparking speculation about whether it might submit an application soon.
The SEC granted approval for BlackRock’s Bitcoin Premium Income ETF, which began trading on June 16.
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