Morgan Stanley launches Ethereum and Solana ETP with staking

Morgan Stanley Investment Management is significantly expanding its crypto offering. The financial firm is launching two new exchange traded products on NYSE Arca: the Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL). Both products provide investors with exposure to Ethereum and Solana respectively, with a notably low expense ratio of 0.14%.

Ethereum and Solana are available from Bitvavo and Bybit.

Staking Rewards Fully Passed to Investors

A standout feature of both products is the use of staking. Morgan Stanley has stated that a portion of the ETH and SOL holdings within the trusts will be staked. What makes this particularly attractive is that Morgan Stanley retains none of the staking rewards. All income generated through staking goes directly to the investors in the product.

This is a deliberate choice that sets the products apart from many other crypto ETPs on the market. By passing on the full staking rewards, Morgan Stanley increases the potential return for investors compared with products that do not do so. At the same time, the expense ratio of 0.14% remains relatively low for this type of product, according to Business Wire.

A Complete Crypto ETP Package from Morgan Stanley

With the launch of MSSE and MSOL, Morgan Stanley now has a full trio of crypto ETPs. The firm has for some time already offered the Morgan Stanley Bitcoin Trust (MSBT). Together, the three products give investors access to the three largest cryptocurrencies, Bitcoin, Ethereum and Solana, through a single asset manager. This aligns with a broader trend of major financial institutions expanding their crypto offerings, as also seen in the fact that Ethereum ETFs have been attracting inflows for three consecutive weeks.

Morgan Stanley’s move underscores the growing institutional interest in crypto. By offering both Ethereum and Solana through regulated products on a major exchange such as NYSE Arca, the firm makes it easier for a wide range of institutional and retail investors to gain exposure to these assets. As a result, the Solana and Ethereum markets may see additional demand from the traditional financial sector in the longer term.