Morgan Stanley has introduced two new exchange-traded products, MSSE and MSOL, that track Ethereum and Solana while charging just 0.14% in fees, making them the cheapest options on the market for these assets. The products launched on NYSE Arca on July 28 and include staking features designed to boost returns.
The new trusts represent Morgan Stanley's move to expand its crypto offerings beyond Bitcoin, leveraging its vast advisory network of 16,000 financial professionals to attract investors seeking diversified exposure to digital assets. By staking part of their holdings, these products aim to capture additional rewards from the Ethereum and Solana networks, with all staking earnings returned directly to investors rather than retained by the firm.
Balancing Risk and Rewards in Staking
Staking adds complexity. While it can enhance yields, it also exposes the products to risks such as slashing penalties from validator errors and periods when assets are locked during network entry or exit. Morgan Stanley plans to limit staking to a portion of the trusts’ assets to mitigate these issues. This cautious approach comes as Ethereum continues to enhance its staking efficiency, reflected in recent upgrades like the Lido core upgrade.
The debut of MSSE and MSOL could shift crypto ETF flows, given the competitive pricing and staking rewards versus existing funds. Morgan Stanley’s Bitcoin Trust has already gathered over $400 million in net inflows since its early 2026 launch, signaling solid demand for Wall Street-backed crypto products.
This material is informational and does not constitute financial advice.
