Morgan Stanley has officially expanded its digital asset investment lineup by launching two new exchange-traded funds that offer exposure to Ethereum and Solana while incorporating staking rewards. The new funds, listed on NYSE Arca, enter the market with a 0.14% annual expense ratio, making them the lowest-cost spot ETH and SOL ETFs currently available in the United States.
Low Fees and Staking Income
The new Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust aim to give investors access to the price performance of the two leading proof-of-stake cryptocurrencies while also generating additional income through blockchain staking. The firm expects approximately 95% of staking rewards to flow back to shareholders after covering operational costs associated with staking.
For Ethereum, the fund plans to stake between 50% and 80% of its holdings, while the Solana fund may stake as much as 100% of its assets, depending on market conditions and operational considerations. This structure allows investors to benefit from staking yields without managing wallets, private keys, or validator infrastructure.
Growing Competition in Crypto ETFs
The launch reflects intensifying competition among asset managers as firms race to attract investors with lower fees and enhanced product features. Earlier regulatory filings had already indicated Morgan Stanley’s intention to undercut competitors on pricing, and the official debut confirms that strategy.
By combining spot cryptocurrency exposure with staking rewards, the products offer investors a more comprehensive way to participate in proof-of-stake networks through traditional brokerage accounts. The move also highlights how digital asset investment products continue to evolve as regulatory frameworks become more accommodating to staking within exchange-traded funds.
Morgan Stanley’s latest offerings further strengthen the integration of cryptocurrencies into mainstream financial markets. As institutional demand for digital assets continues to grow, low-cost, staking-enabled ETFs could become an increasingly attractive option for investors seeking both long-term crypto exposure and additional yield.
