Morgan Stanley is expanding its digital asset offerings with the launch of exchange-traded products (ETPs) tracking ether (ETH) and solana (SOL), following the success of its spot bitcoin fund. The new products, the Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL), began trading on NYSE Arca on Tuesday.
Low Fees and Staking Rewards
Both funds charge a market-leading 0.14% expense ratio – the lowest among competitors. Notably, a portion of the ether and SOL holdings will be staked, with any staking rewards passed directly to investors, not retained by Morgan Stanley. The funds track the CoinDesk Ether Benchmark 4PM NY Settlement Rate and CoinDesk Solana Benchmark 4PM NY Settlement Rate, providing exposure without direct token custody.
Built-In Distribution Advantage
Morgan Stanley's wealth management business includes roughly 16,000 financial advisors overseeing over $9 trillion in client assets. Combined with its ownership of E*TRADE, the firm has a direct line to millions of self-directed investors, giving these new ETPs a significant distribution edge.
Growing Crypto ETP Market
The launch comes as large asset managers broaden their crypto offerings amid rising investor demand. Since the debut of spot bitcoin ETFs in January 2024, ether products have become well-established, and solana is emerging as the next competitive frontier. There are already eight SOL exchange-traded funds listed, with total net assets of $889.3 million.
Morgan Stanley's Bitcoin Fund Success
The new products build on the Morgan Stanley Bitcoin Trust (MSBT), which debuted earlier this year and had gathered over $381 million in assets under management through July 16. The bitcoin fund tracks the CoinDesk Bitcoin Benchmark Rate.
Quote from Morgan Stanley
"Digital assets are becoming an increasingly important component of diversified investment portfolios," said Amy Oldenburg, head of digital asset strategy at Morgan Stanley. "As client interest in digital assets continues to grow, we're focused on providing a range of digital asset solutions that allow investors to diversify their portfolios across traditional and decentralized asset classes while also adhering to Morgan Stanley's standards for governance, infrastructure and risk management."
Broader Industry Context
BlackRock, which owns the largest spot bitcoin ETF, recently launched its first crypto income ETF, reflecting growing client demand for steady income from long-term bitcoin investments. This trend underscores the institutional adoption of cryptocurrencies as a mainstream asset class.
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