- Morgan Stanley has launched new spot Ethereum and Solana ETFs, both featuring a 0.14% expense ratio, the lowest currently available in their categories.
- The firm also plans to stake a portion of the funds’ ETH and SOL holdings, allowing investors to benefit indirectly from staking rewards.
- The launch expands Morgan Stanley’s digital asset ETF lineup as competition among issuers intensifies.
Morgan Stanley has officially entered the spot Ethereum and Solana ETF market, launching two new exchange-traded funds that immediately undercut rivals on fees.
The firm’s new spot Ethereum ETF (MSSE) and spot Solana ETF (MSOL) each carry a 0.14% sponsor fee, making them the lowest-cost products currently available in their respective categories.
The move highlights the increasingly competitive landscape as major asset managers continue expanding their cryptocurrency investment offerings.
Lowest Fees in the Market
Morgan Stanley’s pricing places both ETFs ahead of several competing products.
Its Ethereum ETF charges less than Grayscale’s Mini Ethereum Trust, which carries a 0.15% fee, while its Solana ETF undercuts Franklin Templeton’s Solana ETF, which charges 0.19%.
Lower management fees can make ETFs more attractive to long-term investors by reducing the overall cost of holding digital assets over time.
Staking Adds Another Feature
In addition to offering direct exposure to Ethereum and Solana, Morgan Stanley said it intends to stake a portion of each fund’s cryptocurrency holdings.
By participating in network staking, the funds can generate additional rewards from the Ethereum and Solana blockchains, potentially enhancing returns while continuing to maintain exposure to the underlying assets.
Staking has increasingly become a distinguishing feature as more asset managers introduce spot crypto ETFs.
Expanding Its Digital Asset Platform
Morgan Stanley said the launch builds on its growing ETF business, which now manages more than $14 billion in ETF and exchange-traded product assets.
According to the firm, the addition of MSSE and MSOL is part of a broader strategy to provide investors with simpler access to digital assets through regulated investment products.
Bloomberg ETF analyst Eric Balchunas also noted that Morgan Stanley’s spot Bitcoin ETF accumulated roughly $400 million in assets within four months despite launching during a challenging market environment.
Competition Continues to Intensify
The launch comes as the U.S. crypto ETF market continues expanding beyond Bitcoin.
Following the success of spot Bitcoin ETFs introduced by firms such as BlackRock and Fidelity, asset managers have rapidly introduced products tied to Ethereum, Solana, XRP, Hyperliquid, and other digital assets.
Recent industry data shows that Solana and Hyperliquid ETFs accounted for nearly 80% of trading volume among non-Bitcoin and non-Ethereum crypto ETFs, underscoring growing investor demand for alternative digital asset investment products.
