Morgan Stanley Slashes Crypto Fees, Filing New Spot Ethereum and Solana ETF Updates
Morgan Stanley has advanced its plans for new cryptocurrency exchange-traded funds. The financial powerhouse submitted updated S-1 registration statements to the Securities and Exchange Commission (SEC) on Thursday. These filings represent the second official amendments for both the spot Ethereum (ETH) and Solana (SOL) applications since January.
Introducing the Lowest Sponsor Fees in the Industry
The updated filings reveal a highly competitive pricing strategy designed to capture market share. Morgan Stanley has set the sponsor fee for both its ETH and SOL ETFs at a mere 0.14%.
This ultra-low rate completely resets the competitive landscape for U.S. crypto funds:
- Ethereum Fee War: The 0.14% rate undercuts Grayscale’s Mini Ethereum Trust, which sits at 0.15%.
- Solana Fee War: The fee easily beats Franklin Templeton’s SOEZ fund, which previously led the market at 0.19%.
Yield Generation Through Integrated Crypto Staking
To increase investor returns, Morgan Stanley plans to stake a portion of the digital assets held within the funds. Staking allows the funds to generate passive rewards directly from the blockchain networks.
The bank has partnered with major industry players to manage this infrastructure:
- Staking Partners: Figment Inc., Galaxy Blockchain Infrastructure LLC, and Coinbase Canada, Inc. will serve as providers.
- Fee Structure: A 5% staking fee will be distributed to these service providers and fund custodians.
Once officially approved by regulators, the Ethereum fund will trade under the ticker symbol MSSE. The Solana fund will launch under the ticker MSOL.
Replicating the Success of Morgan Stanley's Bitcoin Fund
Submitting these detailed amendments indicates active, ongoing dialogue with the SEC. This progression heavily mimics the successful rollout of the Morgan Stanley Bitcoin Trust (MSBT) earlier this year.
MSBT debuted in April with the same disruptive 0.14% sponsor fee. By undercutting established bitcoin rivals, MSBT rapidly attracted investor capital. The bitcoin fund has already pulled in an impressive $300.7 million in cumulative net inflows.
