- On Tuesday, Morgan Stanley filed an updated S-1/A for spot Ethereum and Solana ETFs with a 0.14%.
- Along with the lowest fees, Morgan Stanley has included staking provisions for both ETH and SOL ETFs.
- In both filings, the company has mentioned BNY Mellon and Coinbase Custody as joint custodians.
On July 14, Morgan Stanley, an American multinational investment bank, shared updated S-1/A filings for Ethereum and Solana exchange-traded funds (ETFs). With this filing, the official launch of another Ethereum and Solana ETFs comes closer.
Morgan Stanley Makes New Amendments to ETH and SOL ETF Filings
Morgan Stanley filed updated registration statements with the SEC today for its proposed spot Ethereum and Solana trusts. The new changes in both filings provide more operational information on the Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust as the bank moves forward with its crypto ETF offerings after witnessing the success of Bitcoin ETFs.
The new filings are making some amendments to earlier S-1 submissions from January 2026. These new filings share major details, including custody arrangements, fee structures, and staking provisions for both products.
In both filings, Morgan Stanley has clearly mentioned BNY Mellon and Coinbase Custody as joint custodians. This will help the issuer to combine traditional banking infrastructure with crypto custody services.
The sponsor fee for the Ethereum and Solana ETFs will be around 0.14% annualized, accruing daily based on net asset value. This rate will put Morgan Stanley’s products among the lowest-cost alternatives in similar categories. Also, Morgan Stanley Investment Management Inc. will serve as the Delegated Sponsor for both ETFs.
The most impressive feature of Ethereum ETFs is their staking rewards. The Ethereum trust includes provisions for staking a portion of holdings through approved third-party providers. ETH would be placed into network smart contracts, where validators will operate externally. However, the filing clearly mentioned slashing risks, which could take place in the potential loss of staked ETH due to validator failures or protocol violations.
According to the official filings, Morgan Stanley will list Ethereum ETF and Solana ETF on NYSE Arca under the tickers of MSSE and MSOL, respectively.
The trusts are structured as grantor trusts that hold spot ETFs and SOL directly. The updates come after the SEC’s feedback on custody, fees, and yield-generating features during the review process.
Morgan Stanley Expands Crypto ETF Suite with ETH and SOL Filings
Earlier this year, Morgan Stanley announced the launch of a Bitcoin ETF, which gave the company direct exposure to spot crypto products. The filings for Ethereum and Solana build on that foundation while competing in the market that has seen impressive growth in the last few months.
The total net inflow of Bitcoin ETFs has soared above $51.31 billion, according to Coinglass. The daily total net inflow currently revolves around $21.10 million. Despite the ongoing bearish momentum in the cryptocurrency market, BTC ETFs are still witnessing steady inflows, which shows the institutional investors’ trust in crypto ETFs.
However, ETH and SOL ETFs have failed to make a noise among institutional investors. As of now, the cumulative net inflows of Ethereum spot ETFs have soared above $2.65 billion, while Solana ETFs stand at around $1.13 billion.
In the last few months, many issuers have filed or amended S-1s with the SEC. It is focusing on competitive fees and staking mechanics.
Morgan Stanley is currently managing over $1.5 trillion in advisory assets. This could make it one of the biggest issuers for SOL and ETH ETFs.
The main highlight of ETH and SOL ETFs is their staking rewards or yields. This comes after the SEC shared a major statement on certain liquid staking activities in 2025.
In the official document, the SEC stated that “It is the Division’s view that “Liquid Staking Activities” (as defined below) in connection with Protocol Staking do not involve the offer and sale of securities within the meaning of Section 2(a)(1) of the Securities Act of 1933 (the “Securities Act”) or Section 3(a)(10) of the Securities Exchange Act of 1934 (the “Exchange Act”).”
However, regulators have asked issuers to balance yields for investors against various risks such as slashing, smart contract vulnerabilities, and custody. In the past, the SEC has approved staking in some cases after a long review process.
In June, Morgan Stanley Wealth Management revealed a referral partnership with Galaxy Digital to introduce a way for eligible clients to use in-kind creation for spot cryptocurrency exchange-traded products (ETPs).
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