Morgan Stanley introduced spot Ethereum and Solana exchange-traded products with an unprecedented 0.14% annual fee, lowering the cost floor for these types of crypto ETFs. Each fund launched with approximately $1 million in seed capital, starting with 50,000 shares.

The Ethereum Trust (MSSE) and Solana Trust (MSOL) trade on NYSE Arca, charging 0.14% daily against net asset value undercutting Grayscale’s previous lowest fee of 0.15%. Bloomberg ETF analyst Eric Balchunas highlighted how these fees could reshape investor expectations, especially given Morgan Stanley’s Bitcoin Trust grew from $34 million to $381 million in just over three months despite a challenging market.

Staking Rewards and Fund Mechanics

Unlike traditional ETFs, these trusts engage in staking through partners like Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada. Custodians and service providers take 5% of gross rewards, while Morgan Stanley does not keep any staking rewards but charges the 0.14% management fee separately. MSOL plans to stake up to 100% of its SOL holdings, whereas MSSE targets between 50% to 80% staking for ether, with a maximum cap at 80%. One operational caveat: Ethereum’s validator queue currently creates a roughly 47-day delay before staked ether earns rewards, while Solana staking matures in two to three days. Distributions to holders come monthly in cash, funded by selling tokens earned from staking.

Market Impact and Investor Attention

With about 16,000 Morgan Stanley advisers managing nearly $9.3 trillion, the introduction of these low-fee spot crypto ETFs could drive significant capital flows if advisers opt into these discounted products during Ethereum and Solana’s deep price corrections Ether trades 61% below its August 2025 peak, and Solana is down 75% from January 2025 highs. Morgan Stanley’s recent enablement of spot crypto trading on E*TRADE might also make these ETFs more accessible to retail and institutional investors alike.

The real test will be if inflows follow the attractive fees amid ongoing price volatility and a mixed staking landscape. Morgan Stanley’s Bitcoin Trust experience shows potential for rapid growth, but these new products face uncertain dynamics as they debut amid broader crypto market challenges.

This article is informational and not investment advice.