Morgan Stanley has taken one other step towards launching its spot Ethereum and Solana exchange-traded funds, submitting second-amended S-1 registration statements with the U.S. Securities and Change Fee on Thursday. The up to date filings introduce an in depth charge construction and staking mechanism for each merchandise — and in doing so, place Morgan Stanley to supply the most affordable ETH and SOL ETFs presently obtainable in the US.
Second Modification Alerts SEC Progress
The filings signify the second amendments for each the ETH and SOL ETF purposes, which had been initially submitted in January. Whereas the SEC has not but accepted both fund, amended filings of this nature are broadly interpreted as an indication of energetic, ongoing dialogue between an issuer and the regulator. Every revision usually displays responses to SEC suggestions and motion towards a last approval choice.
The Ethereum fund is predicted to commerce beneath the ticker image MSSE, and the Solana fund beneath MSOL. No agency launch dates have been introduced, as these stay contingent on SEC clearance.
Morgan Stanley Information Low Charge Ethereum, Solana ETFs
Charges Set Beneath Each Current Competitor
The headline disclosure in Thursday’s filings is the charge construction. Each the Morgan Stanley Ethereum Belief and the Morgan Stanley Solana Belief would cost a 0.14% annual sponsor charge, calculated every day primarily based on every fund’s internet asset worth and paid on a month-to-month foundation.
That charge undercuts each present ETH and SOL ETF presently available on the market. Grayscale’s Mini Ethereum Belief presently provides the bottom Ethereum ETF sponsor charge at 0.15%, whereas Franklin Templeton’s SOEZ fees the bottom fee amongst Solana ETFs at 0.19%, in response to information from SoSoValue. Bloomberg ETF analyst Eric Balchunas weighed in on the event, noting that the 14 foundation level fee would make each funds “the most affordable within the U.S. and world.”
Making use of the identical rock-bottom pricing to each Ether and Solana suggests Morgan Stanley intends to compete totally on value, leaning on its massive wealth-management and advisory community to channel shopper property into its personal merchandise relatively than rivals’.
The charge technique mirrors the strategy the financial institution used to interrupt into the Bitcoin ETF market. Morgan Stanley’s Bitcoin Belief (MSBT) launched in April, benefiting from its 0.14% sponsor charge that undercut established spot Bitcoin funds. As of June 18, MSBT has drawn in $300.7 million in cumulative internet inflows.
Staking Baked Into Each Funds
Past the charges, the amendments introduce staking performance to each merchandise — a characteristic that might give Morgan Stanley’s ETFs a significant yield benefit over funds that maintain crypto with out placing it to work.
The proposed construction would maintain 95% of staking rewards contained in the trusts, with 5% paid to staking service suppliers and custodians as compensation. Figment Inc., Galaxy Blockchain Infrastructure LLC, and Coinbase Canada, Inc. will function the staking service suppliers for each funds.
In keeping with the submitting, the sponsor itself is not going to be entitled to any share of staking rewards past the administration charge. For buyers, this construction means they stand to learn not solely from worth publicity to ETH and SOL but in addition from the continued yield generated by staking — a significant differentiator in a market the place most competing merchandise supply worth publicity alone.
Ethereum Staking: Queue and Timing Dangers Disclosed
The Ethereum submitting goes into appreciable operational element about staking mechanics, together with community constraints that have an effect on how rapidly property can start producing rewards.
Round 3.64 million ETH was within the queue to be activated on validators as of Could 18, 2026. Ethereum limits the variety of validators that may enter the staking queue to 56 per epoch, which interprets to roughly 57,600 ETH per day. Primarily based on these figures, Morgan Stanley estimated that newly staked Ether might face an activation delay of roughly 63 days earlier than changing into eligible to earn staking rewards.
The submitting additionally discloses slashing threat — a mechanism by which staked ETH might be faraway from a validator’s account if the community’s guidelines are violated or if a validator fails to carry out its duties. It is a customary disclosure for any staking-enabled fund construction.
Solana Mechanics Differ Barely
The Solana submitting follows a broadly comparable framework however with a number of key distinctions. Not like the Ethereum submitting, the Solana modification doesn’t disclose any every day staking capability limits. Morgan Stanley additionally acknowledged that custodians concerned within the staking course of is not going to management the personal keys related to delegated SOL property. This design alternative retains key custody separated from the staking perform, lowering a selected class of operational threat.
Broader Crypto ETF Panorama
Morgan Stanley’s filings come because the broader crypto ETF market continues to broaden quickly. The disclosures arrive as asset managers proceed working with U.S. regulators on fund buildings that mix direct cryptocurrency publicity with staking-based yield era. The SEC lately accepted BlackRock’s Bitcoin Premium Earnings ETF, which went dwell on June 16, additional signaling the regulator’s rising openness to progressive crypto fund buildings.
Morgan Stanley has additionally attracted consideration concerning a possible XRP ETF submitting, after the establishment lately revealed holdings in present XRP ETFs, prompting market hypothesis a couple of forthcoming utility. If accepted, the ETH and SOL merchandise would lengthen the financial institution’s presence throughout all three of the biggest property with U.S. spot ETFs.
For now, the amended filings mark a significant checkpoint within the approval course of. With the bottom proposed charges in each markets, a staking yield element in-built from launch, and a Bitcoin ETF already demonstrating the financial institution’s capacity to draw institutional capital, Morgan Stanley is positioning itself as a critical long-term participant within the crypto ETF house — not merely a late entrant.
