Morgan Stanley Launches Ethereum and Solana Trusts with Staking Rewards
On July 28, Morgan Stanley Investment Management introduced two new exchange-traded products (ETPs): the Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL). These ETPs track ether and SOL prices respectively. They join the previously launched Morgan Stanley Bitcoin Trust (MSBT), which has over $381 million in assets as of July 16, offering investors exposure to three major cryptocurrencies. Both new funds have an expense ratio of 0.14% and plan to stake a portion of their holdings to earn staking rewards, with the firm committing not to retain any part of those earnings for itself. This move highlights Morgan Stanley's growing commitment to crypto access, especially as U.S. regulators recently became more comfortable with staking mechanisms in ETFs. The launch occurs amid a challenging period for crypto funds, marked by significant drawdowns following initial growth from spot bitcoin ETFs starting in early 2024. Despite this, Morgan Stanley is betting on long-term adoption rather than short-term momentum.
Topics: crypto ETF Morgan Stanley staking