As a crypto investor, I’m really watching Morgan Stanley’s move to offer ETFs for both Ethereum and Solana. It’s great to see them expanding beyond just Bitcoin – it signals growing institutional interest and makes it easier for more people to get exposure to these promising altcoins. It’s a positive step for the entire crypto space, in my opinion.
Summary
- MSSE and MSOL began trading on NYSE Arca, providing exposure to Ether and Solana.
- Both products charge a 0.14% annual management fee and include staking.
- Morgan Stanley becomes the first US bank-affiliated asset manager to issue Ethereum and Solana funds.
- The launch comes as crypto ETF flows remain mixed during a wider market downturn.
Morgan Stanley launches MSSE and MSOL
On Tuesday, Morgan Stanley Investment Management introduced two new investment trusts focused on cryptocurrencies: the Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL). Both products are now available for trading on the NYSE Arca exchange.
MSSE is designed to mirror the price movements of Ether, and MSOL tracks SOL, the digital currency used on the Solana network. Both investment products have a very low annual fee of just 0.14%, making them among the most affordable crypto options available in the US.
The launch happened once the necessary paperwork for the funds was completed and approved. NYSE Arca gave the go-ahead after Morgan Stanley filed everything with the US Securities and Exchange Commission.
While often called ETFs, Morgan Stanley technically labels MSSE and MSOL as exchange-traded products. Similar to standard crypto ETFs, these products directly hold digital assets, letting investors benefit from crypto price changes using their regular brokerage accounts – without needing to worry about managing digital wallets or private keys.
Staking adds another source of returns
Both products allow users to earn rewards by staking, which means holding and committing a portion of their tokens to support a blockchain network and help verify transactions.
According to official documents, MSSE intends to commit between half and eighty percent of their Ether to staking. Meanwhile, MSOL could stake all of its Solana. Staking services will be provided by companies including Figment (a part of Galaxy’s blockchain infrastructure team), and Coinbase Canada.
Service and storage providers may keep a small portion—up to 5%—of the rewards earned from staking, with the rest going to the funds themselves. However, how much you ultimately earn will still largely depend on changes in the prices of Ethereum (ETH) and Solana (SOL). It’s also important to remember that staking comes with some risks related to operations, accessing your money, and the network itself.
Morgan Stanley launching its own crypto fund could lead to lower fees for similar funds in the US market. While their fee of 0.14% is less than many Ethereum and Solana funds, investors should also compare how these funds operate and how they handle income from staking.
US investors gain bank-backed crypto access
MSSE and MSOL are the first exchange-traded products for Ethereum and Solana offered by a financial firm linked to a US bank. These products provide US investors with a new, regulated way to invest in cryptocurrency through standard brokerage and retirement accounts.
As a researcher tracking digital asset funds, I’ve been following Morgan Stanley’s entry into the Bitcoin market with their MSBT trust. As of late July, it held roughly $392 million in assets under management, according to information published on their product page.
The bank is now letting customers directly trade cryptocurrencies like Bitcoin, Ethereum, and Solana through E*TRADE. This is powered by a connection to the crypto platform Zerohash. In other news, Morgan Stanley has requested permission to create a new national bank specifically for managing digital assets.
LMAX Group isn’t just focused on its own crypto trading products; it’s a significant player in the broader institutional market. The company is now exploring options that could value it as high as $5 billion, including a possible sale or becoming publicly traded. It’s considering a direct sale to another company, merging with a special acquisition company (SPAC), or an initial public offering (IPO), and is reportedly leaning towards listing on the Nasdaq stock exchange.
Crypto ETF flows remain uneven
Morgan Stanley is starting its crypto business at a tricky time for US-based funds. While Bitcoin ETFs recently saw a week of positive inflows, they’ve now experienced three days in a row of net outflows, according to data from SoSoValue.
Over the last eight trading days, investments in Ethereum have increased overall, seeing positive inflows on six of those days. Solana also experienced some gains, with inflows occurring on four days and no significant outflows on two others.
These results align with a recent downturn in the cryptocurrency market. Bitcoin’s price dropped after briefly trying to surpass $65,000, and both Ethereum and Solana also experienced price declines as investors became more cautious.
Despite recent market conditions, Morgan Stanley is expanding its cryptocurrency services. The success of these new products, MSSE and MSOL, will depend on whether their competitive fees, staking options, and the strength of the Morgan Stanley brand can draw investors away from other companies in the crypto space. Initial trading activity and investment levels will be key indicators.
2026-07-28 19:07