Morgan Stanley's new Ethereum and Solana exchange-traded products launched with some of the lowest fees in the sector, immediately drawing millions in trading volume and challenging established crypto fund providers
Morgan Stanley has entered the U.S. crypto ETF market with new Ethereum and Solana exchange-traded products, aiming to disrupt a space long dominated by early movers like BlackRock, Fidelity, and Bitwise. The Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL) debuted on NYSE Arca, each priced around $20 per share, and together generated approximately $38 million in trading volume on their first day. According to data from SoSoValue, MSSE alone attracted $5.15 million in net inflows, accounting for more than a third of all new money entering U.S. Ethereum funds during the session. MSOL saw $19 million in turnover, though it did not record net creations, as investors pulled capital from competing Solana products.
The launch marks a significant escalation in the competition among crypto fund issuers, particularly as Morgan Stanley is leveraging its massive client base and wealth management infrastructure. The firm's new products are positioned as some of the lowest-cost options available, with both MSSE and MSOL charging a 0.14% annual sponsor fee. Unlike many rivals, Morgan Stanley will not take a direct cut of staking rewards, instead allowing custodians and staking providers to receive up to 5% of gross rewards, with the remainder retained by the trusts before expenses and distributions. This fee structure undercuts competitors such as Bitwise, Grayscale, and Franklin Templeton, whose Solana funds charge higher management fees and pass along a larger share of staking rewards to service providers.
Fee Competition and Staking Mechanics
In the current U.S. market, fee competition among crypto ETFs has intensified, especially for products offering staking rewards. For example, Bitwise's BSOL charges a 0.20% management fee and passes 6% of staking rewards to service providers, while Grayscale's GSOL takes 0.19% and 7%, and Franklin Templeton's SOEZ claims 8%. Some providers, including 21Shares and VanEck, take even larger cuts of staking rewards. On the Ethereum side, Grayscale's lower-cost ETH product charges a 0.15% management fee and 6% staking charge, while BlackRock's ETHB, which temporarily waives its sponsor fee to 0.12% for the first $2.5 billion in assets, still passes 10% of staking rewards to intermediaries. Morgan Stanley's approach is designed to maximize net returns for investors by minimizing both management and staking-related costs.
Both MSSE and MSOL are structured to distribute net staking rewards in cash at least quarterly, with rewards accruing in ETH or SOL and then converted to U.S. dollars for distribution. MSSE plans to stake between 50% and 80% of its Ethereum holdings under normal conditions, with flexibility to adjust based on liquidity and redemption needs. MSOL is more aggressive, targeting up to 100% staking of its Solana holdings, while keeping some assets liquid to meet redemptions. This structure allows investors to access staking income through a traditional brokerage product, without the need to manage private keys or interact directly with blockchain validators.
Market Share and Incumbent Advantage
Despite the low fees and immediate trading activity, Morgan Stanley faces an uphill battle in capturing market share from established funds. Bitwise's BSOL has accumulated roughly $892 million in net inflows, representing the majority of the $1.12 billion tracked across U.S. Solana products. BlackRock's original ETHA product has drawn about $11.4 billion, while its newer staking-enabled ETHB has already attracted over $529 million. These incumbents benefit from deeper liquidity, longer trading histories, and established investor bases, which can be difficult for new entrants to overcome quickly, even with lower fees.
Still, Morgan Stanley's scale and distribution network set it apart. The firm's nearly 16,000 financial advisers oversee $2.6 trillion in client assets, and its broader Wealth Management division reported $7.4 trillion in client assets and more than 20 million client relationships at the end of 2025. The company has also expanded its crypto infrastructure, with E*TRADE now supporting direct trading of Bitcoin, Ethereum, and Solana, and a referral arrangement with Galaxy Digital enabling eligible clients to convert crypto exposure into shares of spot ETPs. This reach gives Morgan Stanley's crypto funds access to a broader investor base than many crypto-native competitors.
Product Expansion and Strategic Positioning
The launch of MSSE and MSOL follows the April debut of the Morgan Stanley Bitcoin Trust (MSBT), which has already gathered over $400 million in assets despite entering a crowded market. With the addition of Ethereum and Solana products, Morgan Stanley is signaling a commitment to expanding its crypto offerings beyond simple spot exposure, moving into staking-enabled products that compete directly on yield and cost. The firm has identified crypto and tokenization as key areas for future growth, aiming to serve clients across its E*TRADE, workplace, and adviser-led channels as digital assets become more integrated into mainstream portfolios.
For investors, the arrival of Morgan Stanley's low-fee, staking-enabled crypto ETFs offers a new way to access blockchain yields without the operational complexity of self-custody or direct staking. The products' structure, fee model, and distribution network could pressure other issuers to lower costs or improve yield retention, potentially reshaping the competitive landscape for crypto funds in the U.S.
On July 28, 2026, Morgan Stanley's Ethereum and Solana exchange-traded products launched on NYSE Arca, generating a combined $38 million in first-day trading volume. The Morgan Stanley Ethereum Trust (MSSE) saw $5.15 million in net inflows, while the Morgan Stanley Solana Trust (MSOL) recorded $19 million in turnover. According to SoSoValue, MSSE's inflows represented over a third of all new money entering U.S. Ethereum funds that day. Bitwise's BSOL, the leading Solana fund, has accumulated $892 million in net inflows, while BlackRock's ETHA has drawn $11.4 billion since launch.
Staking-enabled crypto ETFs allow investors to earn blockchain rewards through a regulated brokerage product, but the actual yield depends on several factors. These include the percentage of the fund's assets that are staked, the portion of rewards retained by intermediaries, and the fund's management and staking fees. While lower fees can improve net returns, established funds often maintain an advantage through deeper liquidity and larger investor bases. Investors should also consider the operational and regulatory risks associated with staking, as well as the potential for changes in network reward rates or fund policies over time.
