Morgan Stanley Launches Ethereum and Solana ETPs With Staking Rewards
In brief
- Morgan Stanley launched Ethereum (MSSE) and Solana (MSOL) ETPs charging 0.14% expense ratios with staking rewards.
- ETPs track asset prices while staking holdings and distributing rewards directly to investors.
- Morgan Stanley's crypto ETF/ETP platform now exceeds $14 billion across 22 products since 2023.
- Firm also expanded spot crypto trading for E*TRADE and is exploring tokenized money market funds.
New Products Track Assets While Staking
The Morgan Stanley Ethereum Trust (NYSE Arca: MSSE) and Morgan Stanley Solana Trust (NYSE Arca: MSOL) track the price of each asset respectively. Each fund charges a 0.14% expense ratio, stakes a portion of its holdings, and passes staking rewards through to investors. The structure mirrors Morgan Stanley's approach to simplifying digital asset access through a regulated wrapper.
This follows Morgan Stanley's April introduction of its spot Bitcoin Trust, which had attracted more than $381 million in assets under management through July 16. The firm's broader ETF and ETP platform has grown to more than $14 billion across 22 products since introducing its first ETFs in 2023.
Broader Digital Asset Strategy
Morgan Stanley isn't stopping with these two products. In July, the firm rolled out spot Bitcoin, Ethereum, and Solana trading for eligible E*TRADE customers through a partnership with Zero Hash. The bank is also exploring tokenized money market funds and digital asset tax-management strategies through its subsidiary Parametric.
"We're not going to stop at just Bitcoin. It's really about the longer-term journey, and there's quite a long way to go," Amy Oldenburg, head of digital-asset strategy at Morgan Stanley, said in a statement. The comment underscores how traditional finance continues to integrate cryptocurrency into mainstream wealth management.
Frequently asked questions
What are the Morgan Stanley Ethereum and Solana ETPs?
They are exchange-traded products that track the price of Ethereum and Solana while staking a portion of holdings and passing staking rewards to investors. Each charges a 0.14% expense ratio and trades on NYSE Arca under the tickers MSSE and MSOL respectively.
How much does it cost to invest in these products?
Each fund charges a 0.14% expense ratio. Beyond that fee, investors receive the staking rewards generated from the portion of holdings the fund stakes.
Why is Morgan Stanley expanding into Ethereum and Solana?
Morgan Stanley executives said the firm's digital asset strategy extends beyond Bitcoin into alternative cryptocurrencies. The expansion reflects broader institutional adoption of crypto and the firm's goal to provide simplified access to digital assets through regulated wrappers.
