Morgan Stanley has taken one other step towards launching its spot Ethereum and Solana exchange-traded funds, submitting second-amended S-1 registration statements with the U.S. Securities and Trade Fee on Thursday. The up to date filings introduce an in depth charge construction and staking mechanism for each merchandise — and in doing so, place Morgan Stanley to supply the most cost effective ETH and SOL ETFs at present obtainable in the USA.
Second Modification Indicators SEC Progress
The filings characterize the second amendments for each the ETH and SOL ETF purposes, which have been initially submitted in January. Whereas the SEC has not but accepted both fund, amended filings of this nature are extensively interpreted as an indication of lively, ongoing dialogue between an issuer and the regulator. Every revision sometimes displays responses to SEC suggestions and motion towards a remaining approval resolution.
The Ethereum fund is predicted to commerce below the ticker image MSSE, and the Solana fund below MSOL. No agency launch dates have been introduced, as these stay contingent on SEC clearance.
Morgan Stanley Recordsdata Low Payment Ethereum, Solana ETFs
Charges Set Under Each Present Competitor
The headline disclosure in Thursday’s filings is the charge construction. Each the Morgan Stanley Ethereum Belief and the Morgan Stanley Solana Belief would cost a 0.14% annual sponsor charge, calculated every day primarily based on every fund’s web asset worth and paid on a month-to-month foundation.
That charge undercuts each present ETH and SOL ETF at present in the marketplace. Grayscale’s Mini Ethereum Belief at present affords the bottom Ethereum ETF sponsor charge at 0.15%, whereas Franklin Templeton’s SOEZ expenses the bottom price amongst Solana ETFs at 0.19%, in accordance with knowledge from SoSoValue. Bloomberg ETF analyst Eric Balchunas weighed in on the event, noting that the 14 foundation level price would make each funds “the most cost effective within the U.S. and world.”
Making use of the identical rock-bottom pricing to each Ether and Solana suggests Morgan Stanley intends to compete totally on price, leaning on its massive wealth-management and advisory community to channel shopper property into its personal merchandise quite than rivals’.
The charge technique mirrors the method the financial institution used to interrupt into the Bitcoin ETF market. Morgan Stanley’s Bitcoin Belief (MSBT) launched in April, benefiting from its 0.14% sponsor charge that undercut established spot Bitcoin funds. As of June 18, MSBT has drawn in $300.7 million in cumulative web inflows.
Staking Baked Into Each Funds
Past the charges, the amendments introduce staking performance to each merchandise — a characteristic that might give Morgan Stanley’s ETFs a significant yield benefit over funds that maintain crypto with out placing it to work.
The proposed construction would hold 95% of staking rewards contained in the trusts, with 5% paid to staking service suppliers and custodians as compensation. Figment Inc., Galaxy Blockchain Infrastructure LLC, and Coinbase Canada, Inc. will function the staking service suppliers for each funds.
In keeping with the submitting, the sponsor itself won’t be entitled to any share of staking rewards past the administration charge. For traders, this construction means they stand to profit not solely from value publicity to ETH and SOL but additionally from the continuing yield generated by staking — a significant differentiator in a market the place most competing merchandise provide value publicity alone.
Ethereum Staking: Queue and Timing Dangers Disclosed
The Ethereum submitting goes into appreciable operational element about staking mechanics, together with community constraints that have an effect on how shortly property can start producing rewards.
Round 3.64 million ETH was within the queue to be activated on validators as of Could 18, 2026. Ethereum limits the variety of validators that may enter the staking queue to 56 per epoch, which interprets to roughly 57,600 ETH per day. Based mostly on these figures, Morgan Stanley estimated that newly staked Ether might face an activation delay of roughly 63 days earlier than turning into eligible to earn staking rewards.
The submitting additionally discloses slashing danger — a mechanism by which staked ETH could be faraway from a validator’s account if the community’s guidelines are violated or if a validator fails to carry out its duties. This can be a commonplace disclosure for any staking-enabled fund construction.
Solana Mechanics Differ Barely
The Solana submitting follows a broadly comparable framework however with a couple of key distinctions. Not like the Ethereum submitting, the Solana modification doesn’t disclose any every day staking capability limits. Morgan Stanley additionally acknowledged that custodians concerned within the staking course of won’t management the personal keys related to delegated SOL property. This design selection retains key custody separated from the staking operate, decreasing a specific class of operational danger.
Broader Crypto ETF Panorama
Morgan Stanley’s filings come because the broader crypto ETF market continues to broaden quickly. The disclosures arrive as asset managers proceed working with U.S. regulators on fund constructions that mix direct cryptocurrency publicity with staking-based yield era. The SEC just lately accepted BlackRock’s Bitcoin Premium Earnings ETF, which went reside on June 16, additional signaling the regulator’s rising openness to modern crypto fund constructions.
Morgan Stanley has additionally attracted consideration concerning a possible XRP ETF submitting, after the establishment just lately revealed holdings in present XRP ETFs, prompting market hypothesis a few forthcoming software. If accepted, the ETH and SOL merchandise would prolong the financial institution’s presence throughout all three of the most important property with U.S. spot ETFs.
For now, the amended filings mark a significant checkpoint within the approval course of. With the bottom proposed charges in each markets, a staking yield element inbuilt from launch, and a Bitcoin ETF already demonstrating the financial institution’s potential to draw institutional capital, Morgan Stanley is positioning itself as a severe long-term participant within the crypto ETF area — not merely a late entrant.
