TLDR
- Morgan Stanley has filed a registration statement with the SEC to launch a spot Ethereum ETF.
- The Ethereum ETF will include staking rewards and reflect them through the fund’s net asset value.
- This filing follows the bank’s spot Bitcoin and Solana ETF applications submitted just one day earlier.
- The fund will use in-kind creation and redemption but has not disclosed its exchange or ticker details.
- Morgan Stanley began offering crypto access to wealth management clients in October.
Morgan Stanley has filed a registration statement with the U.S. Securities and Exchange Commission to launch an Ethereum ETF, marking another step into crypto after submitting applications for Bitcoin and Solana ETFs, which came just a day earlier, showing the Wall Street bank’s rapid move toward digital asset investment products.
Ethereum ETF to Include Staking Rewards in NAV
Morgan Stanley filed the S-1 registration for the Morgan Stanley Ethereum Trust on Wednesday with the U.S. SEC. The trust aims to hold Ethereum and track its market price.
The fund will also stake a portion of its Ether holdings to earn rewards on-chain. Instead of distributing those rewards to shareholders, the fund will reflect them in its net asset value.
This structure contrasts with other Ethereum ETF proposals such as Grayscale’s, which plan to pay staking income directly to investors. The filing does not disclose the ETF’s ticker symbol or which exchange it will list on.
Furthermore, the custodian details are currently absent from the documentation. The fund intends to offer in-kind creations and redemptions, aligning with industry-standard ETF practices.
Bitcoin and Solana ETF Filings Preceded Ethereum Trust
Just a day earlier, Morgan Stanley filed registration statements for Bitcoin and Solana ETFs. This move brought the total filings to three within a 24-hour period.
The bank’s expansion into crypto ETF offerings reflects efforts to meet client demand through regulated investment vehicles. Bloomberg analysts said the filings were unexpected, but logical given Morgan Stanley’s distribution reach.
James Seyffart and Eric Balchunas stated, “Morgan Stanley has strong global coverage and a clear pipeline for ETF growth.” The firm operates across 42 countries, offering broad access to crypto exposure.
Bitwise CIO Matt Hougan added, “Morgan Stanley manages 20 ETFs, mostly under Calvert, Parametric, and Eaton Vance brands.”
The new ETFs will carry the Morgan Stanley name directly.
Crypto Expansion Follows Wealth Access and Retail Strategy
Morgan Stanley first opened crypto access to wealth clients in October through its wealth management division. The bank has since removed crypto investment restrictions for this client segment.
It also partnered with ZeroHash to enable crypto trading for retail users on its E-Trade platform. This partnership is part of its long-term retail crypto strategy.
The firm has not yet confirmed the specific launch date of its crypto ETFs. It is expected that BTC, ETH, and SOL ETFs will first be offered to wealth clients.
BlackRock’s ETHA fund recorded $197.7 million in inflows yesterday. In contrast, Grayscale Ethereum Trust saw outflows totaling $53 million.
21Shares and Bitwise saw modest inflows of $1.62 million and $1.39 million, respectively, into their Ethereum ETFs. Fidelity’s Ethereum Fund recorded a $1.62 million outflow on the same day.
Morgan Stanley also updated its gold forecast, projecting a price of $4,800 per ounce by Q4 2026. The forecast cites anticipated U.S. Federal Reserve leadership changes and falling interest rates.
The bank pointed to rising central bank gold purchases and recent global uncertainty. Events in Venezuela were among the factors behind gold’s increased appeal.
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