Key highlights:
- Morgan Stanley’s spot ETH and SOL ETFs are now live on NYSE Arca
- Both funds charge a market-leading 0.14% expense ratio
- Investors will also receive staking rewards on the fund
Morgan Stanley launched two new spot ETFs that give investors exposure to Ethereum and Solana. The new funds would also include staking. This allows investors to earn rewards while holding the assets.
The move comes as demand for regulated crypto investment products continues to grow. These kinds of funds give TradFi investors a way to have exposure to crypto without having to buy or hold the coins.
Morgan Stanley launches ETH and SOL ETFs
In a press release on July 28, the investment bank shared that the Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL) had started trading on NYSE Arca.
The funds are designed to track the spot prices of their respective coins. MSSE follows the CoinDesk Ether Benchmark 4 PM NY Settlement Rate. MSOL tracks the CoinDesk Solana Benchmark 4 PM NY Settlement Rate.
A major attraction of these funds are its cheap fees. Each ETF charges an expense ratio of just 0.14%. It also makes them the cheapest spot Ethereum and Solana ETFs in the U.S.
Before these launches, Grayscale’s Mini Ethereum Trust had the lowest fee in all of the ETH ETFs at 0.15%. Franklin Templeton’s SOEZ charged 0.19% for its Solana ETF, also the cheapest for SOL funds.
Bloomberg Senior ETF Analyst Eric Balchunas shared in the excitement, saying the pricing makes the funds “the cheapest in each category.”
Morgan Stanley Ether and Solana ETFs are launching today.. both charge 0.14% instantly making them the cheapest in each category. Their bitcoin ETF is up to $400m in 4mo despite launching in middle of winter. Good sign. pic.twitter.com/HNm8EKVOoc
— Eric Balchunas (@EricBalchunas) July 28, 2026
The new products also introduce staking. The funds will stake part of their ETH and SOL holdings to generate additional rewards. Morgan Stanley also said that it will not keep a portion of those staking rewards. The earnings will be passed on to shareholders instead.
Morgan Stanley had updated the filings earlier in July in preparation for the launch this week. The documents show that the ETH fund would stake between 50% and 80% of its holdings. The Solana fund, on the other hand, could stake up to 100% of its assets.
The staking services will be done through Figment, Galaxy, and Coinbase Canada, with service fees capped at 5%.
Wall Street giant builds on previous crypto investment
The new launch comes after the firm’s Morgan Stanley Bitcoin Trust (MSBT), which debuted earlier this year.
The Bitcoin ETF was the first crypto ETF from a U.S. bank-affiliated asset manager. It brought in about $34 million in first-day trading volume. The fund has had more than $389.67 million in assets under management as of July 28.
Source: SoSoValue
Ally Wallace, Global Head of ETFs at Morgan Stanley Investment Management, said the new products mark the next step in expanding the firm’s ETF offerings.
“Since introducing our first ETFs in 2023, we’ve built a diversified suite of ETFs and ETPs that now exceed $14 billion in assets under management,” She said. “The addition of MSSE and MSOL reflects the natural evolution of our product suite.”
Experts shared that the low fees and staking rewards could make these funds very attractive to all investors. Eric Balchunas alluded to the firm’s massive wealth management network. He shared that the launch could have an impact on the crypto ETF market because of the bank’s large client base.