Morgan Stanley Launches Low-Fee ETH and SOL Trusts

Morgan Stanley expands crypto suite with MSSE and MSOL

Morgan Stanley Investment Management has added two exchange-traded products that track Ethereum and Solana, marking a notable extension of the Wall Street bank's digital-asset lineup beyond its existing Bitcoin offering. The new trusts are listed on NYSE Arca under the tickers MSSE (Ethereum) and MSOL (Solana) and arrive with competitively low fees and built-in staking capabilities.

Product structure and fee profile

Both MSSE and MSOL are registered as exchange-traded products and function similarly to spot crypto ETFs: they hold the underlying digital assets and let investors gain price exposure through traditional brokerage accounts without handling wallets or private keys. Each product charges an annual management fee of 0.14%, positioning them among the lowest-cost US exchange-traded crypto products available today.

MSSE is designed to track Ether (ETH) price performance, while MSOL follows Solana's native token, SOL. NYSE Arca approved both listings after Morgan Stanley completed the required SEC filings and registration steps.

Staking features and service providers

A key differentiator for these trusts is their ability to stake a portion of holdings to earn blockchain rewards. According to regulatory filings, MSSE intends to stake between 50% and 80% of its Ether, while MSOL may stake up to 100% of its Solana. Staking helps validate transactions on proof-of-stake networks and supplies an additional yield component beyond market price movement.

The trusts will use third-party staking providers, with Figment, Galaxy's blockchain infrastructure arm, and Coinbase Canada named among the service partners. Custodians and service providers may retain up to 5% of staking rewards, with the remaining rewards flowing to the funds and, indirectly, to investors. While staking can boost returns, it also introduces operational, liquidity, and network risks that investors should weigh alongside ETH and SOL price exposure.

First bank-affiliated Ethereum and Solana products in the US

MSSE and MSOL represent the first Ethereum and Solana exchange-traded products issued by an asset manager affiliated with a US bank. For US investors seeking regulated, bank-backed routes to digital assets, these trusts expand the options to gain exposure via taxable brokerage accounts and eligible retirement or custodial accounts.

Earlier this year Morgan Stanley launched the Morgan Stanley Bitcoin Trust (MSBT), which held roughly $392 million in net assets as of July 24, according to the firm. The bank has also broadened direct crypto access for its clients through E*TRADE, enabling purchases of Bitcoin, Ethereum, and Solana via accounts linked to crypto infrastructure provider Zerohash. Separately, Morgan Stanley has applied to create a national trust bank specializing in digital assets, signaling deeper institutional commitment to the sector.

Market context and competitive impact

The arrival of Morgan Stanley's ETH and SOL trusts may increase fee pressure across the US crypto fund market. At a 0.14% expense ratio, MSSE and MSOL undercut many competing Ethereum and Solana funds. But investors must evaluate additional factors such as tracking error, custody arrangements, and how each issuer distributes staking income.

Crypto ETF flows remain mixed amid broader market weakness. Bitcoin ETFs experienced three consecutive sessions of net outflows after a week of inflows, while Ethereum funds posted net inflows on six of the last eight trading days. Solana products saw four days of inflows and two with no net flows in the same window, per SoSoValue data. These mixed flows coincide with recent weakness across major cryptocurrencies — Bitcoin pulled back after retesting $65,000, and both ETH and SOL have seen selling pressure.

Institutional footprint and strategic implications

Beyond product launches, Morgan Stanley's involvement in institutional crypto markets extends to advisory roles and potential deal activity. For example, trading firm LMAX Group appointed Morgan Stanley alongside KBW to explore a possible sale or public listing that could value the company at up to $5 billion. LMAX is reportedly considering direct sale, SPAC, or IPO routes, with Nasdaq listing cited as a likely preference.

The bank's combination of a recognizable brand, low-fee product design, and integrated staking capability may attract institutional and retail flows. Yet initial trading volumes and asset inflows into MSSE and MSOL will determine whether Morgan Stanley can capture market share from established issuers.

Investor considerations

Investors should consider that returns from these exchange-traded products will remain heavily dependent on ETH and SOL price movements. Staking can enhance returns but adds complexity: rewards distribution terms, service provider retention of a portion of rewards, and potential liquidity constraints during network events are all relevant risk factors.

For investors seeking regulated exposure to Ethereum and Solana through a bank-affiliated asset manager, MSSE and MSOL offer a compelling combination of low fees and yield-enhancing staking. However, as with any crypto investment, thorough due diligence and awareness of market volatility and protocol-level risks remain essential.