Morgan Stanley Investment Management has introduced new exchange-traded products tracking Ethereum and Solana, marking another major move in the firm’s growing digital asset portfolio.
New Ethereum and Solana Products
The Wall Street giant unveiled the Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL) on Tuesday, both listed on NYSE Arca. Each fund closely tracks its underlying asset and features a 0.14% expense ratio.
In a departure from traditional spot offerings, both MSSE and MSOL will stake portions of their holdings, passing any staking rewards directly to shareholders. This adds an additional layer of potential return for investors.
Since introducing our first ETFs in 2023, we’ve built a diversified suite of ETFs and ETPs that now exceed $14 billion in assets under management. The addition of MSSE and MSOL reflects the natural evolution of our product suite, which seeks to provide simplified access to digital assets through the ETP wrapper.
Morgan Stanley Investment Management, a division of Morgan Stanley, offers a vast range of investment products and solutions, managing assets globally for a variety of clients.
Mini dictionary: NYSE Arca, an electronic securities exchange in the United States, is known for trading exchange-traded funds and products with a focus on innovation and liquidity.
Staking and Investor Returns
By integrating staking features, these new funds allow investors to benefit from on-chain rewards typically earned by network validators. Unlike standard exchange-traded products, staked assets can generate additional income, which is distributed to investors participating in the funds.
The addition of staking may appeal to institutional and retail clients looking for passive yield opportunities within regulated structures.
Expanding Digital Asset Offerings
Morgan Stanley’s expansion into Ethereum and Solana follows its launch of a spot Bitcoin Trust in April. That product quickly attracted over $381 million in assets under management as of July 16. The firm’s broader ETF and ETP platform has now surpassed $14 billion across 22 products.
| Fund | Asset Tracked | Expense Ratio | Staking | Launch Date |
|---|---|---|---|---|
| MSSE | Ethereum | 0.14% | Yes | July 2024 |
| MSOL | Solana | 0.14% | Yes | July 2024 |
| Bitcoin Trust | Bitcoin | Varies | No | April 2024 |
The company previously indicated its intention to push beyond Bitcoin. Amy Oldenburg, head of digital-asset strategy at Morgan Stanley, remarked on the firm’s plans for further digital asset integration, emphasizing a long-term approach and broadening product range.
We’re not going to stop at just Bitcoin. It’s really about the longer-term journey, and there’s quite a long way to go.
Executives have confirmed ongoing exploration of other innovations, such as tokenized money market funds and tax management strategies involving Morgan Stanley’s subsidiary, Parametric, as well as increased use of blockchain technology in traditional finance products.
In July, the company broadened its digital reach by partnering with Zero Hash to provide spot trading in Bitcoin, Ethereum, and Solana for eligible E*TRADE brokerage customers, allowing users to manage crypto alongside stocks and other investments.
