Key Takeaways:
Morgan Stanley undercut every crypto ETF issuer on price, launching spot Ether and Solana products at 0.14 percent — the lowest fee in both categories.
Morgan Stanley Investment Management on Tuesday launched spot Ethereum and Solana exchange-traded products on NYSE Arca, each charging 0.14 percent — the cheapest fee in both categories. The Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL) each opened with 50,000 shares and roughly $1 million in seed capital, according to prospectus filings.
"Morgan Stanley Ether and Solana ETFs are launching today.. both charge 0.14 percent instantly making them the cheapest in each category," Eric Balchunas, senior ETF analyst at Bloomberg, said. "Their bitcoin ETF is up to $400 million in four months despite launching in middle of winter. Good sign."
The 0.14 percent fee undercuts the previous floor of 0.15 percent set by Grayscale's ether and bitcoin mini trusts. Morgan Stanley's Bitcoin Trust (MSBT), which debuted in April at the same fee, drew $34 million on its first day and reached $381 million by July 16 — 11 times growth across 99 days, though still only 2.7 percent of the firm's $14 billion exchange-traded suite.
Both trusts stake through Figment, Galaxy Blockchain Infrastructure and Coinbase Canada, which take 5 percent of gross rewards while Morgan Stanley retains none. The two funds differ in staking strategy: MSOL intends to stake up to 100 percent of its Solana, while MSSE targets 50 percent to 80 percent of its ether and caps staking at 80 percent. Timing also diverges sharply — Ethereum's validator activation queue stood at roughly 2.71 million ether as of July 6, an estimated 47-day wait during which queued ether earns nothing, per the MSSE filing. Solana bonding takes two to three days, according to the MSOL prospectus. Holders receive rewards as monthly cash distributions, or quarterly at minimum, funded by selling tokens.
The launch arrives as both underlying assets trade deep in drawdown. Ether sits 61 percent below its August 2025 peak, while Solana trades 75 percent under its January 2025 high at roughly $74 — down 3.8 percent since the prospectus priced on July 8. Ether-focused ETFs absorbed lengthy outflow streaks for much of 2026. Around 16,000 Morgan Stanley advisers oversee roughly $9.3 trillion, and the bank activated spot crypto trading through E*TRADE this month, creating a potential distribution channel. Key metrics to watch include creation baskets beyond the seed capital, the staked share of ether — which MSSE commits to publish daily — and the first distribution, which cannot occur until validators clear the queue.
Morgan Stanley's move pressures competitors to match its pricing and staking features. Grayscale's ether mini trust at 0.15 percent and the iShares Staked Ethereum Trust (ETHB), currently at 12 basis points under a fee waiver that will rise to 25 basis points, now face a cheaper rival with a permanent fee floor. The bank's Bitcoin Trust precedent suggests its wealth network can drive meaningful flows even in a bearish environment, though whether advisers allocate into Ethereum and Solana at current drawdown levels remains the open question.
This article is for informational purposes only and does not constitute investment advice.
