Key takeaways
- Morgan Stanley’s Ethereum and Solana filings expand the bank’s proprietary crypto ETF strategy beyond its existing Bitcoin fund.
- The prices offered suggest that crypto ETFs are moving from product novelty to competition for investors’ assets.
- Both trusts would include staking and institutional custody, but would remain preliminary offerings with no confirmed launch dates.
Why the crypto ETF market could enter a commodities phase
Ethereum proposed by Morgan Stanley and Solana exchange-traded funds (ETFs) would enter a market where issuers increasingly offer similar exposure to the same assets. The company recently amended both filings with the U.S. Securities and Exchange Commission (SEC) to include a management fee of 0.14%, lower than Grayscale’s 0.15% and Franklin Templeton’s 0.19%. Tight spreads signal intensifying price competition.
Brian Rudick, director of strategy at Solana treasury company Upexi and former head of research at crypto commercial company and liquidity provider GSR, argued that fees matter less than they suggest about market development. On July 9, he shared on X:
“Issuers do not compete on price until the product is close to a raw material and the fight is over shares, the same squeeze in cash BTC ETFs have been adopted.
” GROUND ETF assets under management have already surpassed $1 billion, led by Bitwise’s BSOL, so there’s a real place to fight,” he added.
The argument places the 0.14% fee as part of a shift from product creation to asset collection. When multiple issuers provide similar exposure, management costs become one of the most obvious points of distinction. Its comparison with spot Bitcoin ETF suggests Ethereum and Solana products may enter the same cost compression phase.
Bitwise launched its Solana ETF, BSOL, on NYSE Arca in October 2025, marking the first US-listed vehicle to offer direct spot exposure GROUND. The fund goes beyond simple price tracking by staking its assets, allowing staking rewards to contribute to fund returns after applicable expenses.
How Morgan Stanley Designed Ethereum and Solana Trusts
The Morgan Stanley Ethereum Trust would trade on the NYSE Arca under the symbol MSSE and track the Coindesk Ether Benchmark 4PM NY settlement rate. Along with its proposed 0.14% fee, Morgan Stanley Investment Management intends to bet 50% to 80% of the trust’s ether under normal conditions.
BNY and Coinbase Custody reportedly hold the Ethereum trust assets. Staking suppliers and depositories would receive a total of 5% of staking rewards, leaving the rest with confidence. Net rewards would be distributed monthly, but at least quarterly, although the filing does not guarantee the amount.
Morgan Stanley Solana Trust would be traded on NYSE Arca under the ticker MSOL and track the Coindesk Solana Benchmark settlement rate at 4 p.m. in New York. It would also carry a proposed fee of 0.14%. The trust can bet up to 100% sound GROUND while keeping certain assets unpledged for redemptions, expenses and distributions.
BNY and Coinbase Custody would also serve as custodians for MSOL. Staking suppliers and depositories would receive 5% staking rewards, leaving 95% with confidence. Net rewards would be distributed monthly, but at least quarterly, while block validator rewards and transaction fees would not be returned to shareholders.
What Morgan Stanley’s Bitcoin ETF Shows About the Strategy
Morgan Stanley has already used the same level of fees in its spot Bitcoin product. Morgan Stanley Bitcoin Trust began trading under the ticker MSBT on April 8, 2026, with an annual management fee of 0.14%. This undercut Blackrock’s IBIT at 0.25% and Bitwise’s spot. Bitcoin ETFs at 0.20%.
MSBT became the first proprietary spot cryptocurrency ETF launched under the name of a major US commercial bank. As of July 10, 2026, the stock was trading at $18.47 and had total net assets of approximately $364.23 million. Its debut ranked in the top 1% of ETF launches in terms of volume and early adoption.
The proposed ETH and SOL funds remain preliminary and shares cannot be sold until the registration statements become effective. No firm launch date has been announced. The SEC’s effectiveness and subsequent asset flows would show whether Morgan Stanley’s combination of low fees, staking revenue and bank-guaranteed distribution can gain market share.
