Morgan Stanley has launched exchange-traded products tracking ether and solana, expanding a digital asset lineup that began with bitcoin. Their 0.14% fees and staking plans raise the competitive pressure on established crypto fund managers.
Key Takeaways
Morgan Stanley launched MSSE and MSOL at 0.14%, undercutting rival ether and solana funds.Morgan Stanley’s 16,000 advisers could shift crypto ETF flows toward low-fee, staking-backed products.MSSE and MSOL will add staking at 0.14%, while slashing and lockups test future returns.Morgan Stanley is bringing its distribution power to the expanding market for cryptocurrency funds, launching ether and solana products with fees below those of existing rivals.
The Morgan Stanley Ethereum Trust, trading as MSSE, and Morgan Stanley Solana Trust (MSOL), began trading on NYSE Arca on Tuesday, July 28.
Each charges an annual expense ratio of 0.14%. That makes them the lowest-priced products in their respective categories at launch, undercutting competing ether and solana funds.
Staking Adds Another Point of CompetitionStaking may improve returns, but it also introduces risks. Assets can become temporarily unavailable during network entry and exit periods. Validator errors may also result in penalties known as slashing. Morgan Stanley therefore expects to stake less than the trusts’ full holdings.
Wall Street Reach Could Reshape the MarketThe firm has roughly 16,000 financial advisers, giving the funds access to a distribution network few crypto-native issuers can match.
Morgan Stanley’s entry is therefore about more than two new tickers. By combining low fees, staking income and a vast wealth-management channel, the bank is forcing the crypto fund market into a new phase of competition.
