Hassan Maishera
TL;DR
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Morgan Stanley has filed new amendments for its Ethereum and Solana ETFs, signaling progress in the launch process.
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Solana and Ethereum are underperforming as the crypto market remains bearish.
Ethereum and Solana exchange-traded fund proposals from Morgan Stanley have moved forward with new amended filings, signaling continued progress toward potential U.S. approval.
The filings follow the firm’s recent bitcoin ETF debut and highlight growing competition in the crypto ETF market.
Second SEC Amendments Signal Progress in Approval Process
On Thursday, Morgan Stanley submitted updated S-1 registration statements to the U.S. Securities and Exchange Commission (SEC) for both its Ethereum and Solana ETF applications.
These latest filings represent the second amendments since the products were first submitted in January, indicating ongoing regulatory engagement and refinement of the proposed funds.
Market participants often view repeated amendments as a sign of active dialogue with regulators and incremental progress toward potential launch approval.
A key highlight of the updated filings is the disclosure of sponsor fees set at 0.14% for both ETFs.
This would position Morgan Stanley’s proposed funds as the lowest-cost offerings in their respective U.S. markets.
For context, the current lowest Ethereum ETF fee stands at 0.15% from Grayscale’s Mini Ethereum Trust, while Solana ETF competition is led by Franklin Templeton’s SOEZ at 0.19%.
If approved, Morgan Stanley’s pricing could intensify fee competition among digital asset ETF issuers.
Staking Strategy Introduced for Additional Yield Generation
The filings also revealed plans to incorporate staking into the ETF structure. According to the documents, portions of the ETFs’ holdings may be staked to generate additional rewards.
The staking infrastructure will be supported by providers including Figment Inc., Galaxy Blockchain Infrastructure LLC, and Coinbase Canada, Inc.
A 5% staking fee will be allocated to staking service providers and custodians, creating an additional revenue layer tied to network participation.
This structure reflects a growing trend of integrating yield-generating mechanisms into regulated crypto investment products.
The Ethereum ETF is expected to trade under the ticker MSSE, while the Solana ETF is expected to launch under MSOL.
Morgan Stanley’s earlier Bitcoin ETF, the Morgan Stanley Bitcoin Trust (MSBT), launched in April and has already attracted strong investor interest.
As of June 18, the fund recorded approximately $300.7 million in cumulative net inflows.
The relatively strong reception to MSBT is seen as a potential indicator of demand for the firm’s upcoming Ethereum and Solana offerings.
