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 Combines 0.14% Fees and Staking to Challenge Crypto Fund Leaders
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 Competition
Morgan Stanley plans to stake part of each trust’s holdings to earn rewards from the Ethereum and Solana networks. The company said it will not retain any share of those rewards, allowing the benefits to flow back into the products.
Staking 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.
“Digital assets are becoming an increasingly important component of diversified investment portfolios. As client interest in digital assets continues to grow, we’re focused on providing a range of digital asset solutions that allow investors to diversify their portfolios across traditional and decentralized asset classes,” Amy Oldenburg, Morgan Stanley’s head of digital asset strategy, said in the announcement.
Wall Street Reach Could Reshape the Market
The launches follow the Morgan Stanley Bitcoin Trust, which accumulated more than $400 million in cumulative net flows by July 27 after debuting earlier in 2026. Morgan Stanley’s wider exchange-traded product business now oversees more than $14 billion across 22 products.
Bloomberg Intelligence analyst Eric Balchunas described the new funds as the most significant ether and solana launches since the first products entered the market. He pointed to Morgan Stanley’s large adviser network and the reach of its platform as key advantages.
The 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.
