Morgan Stanley Reveals 0.14% Fees for Proposed Ethereum and Solana ETFs

TLDR

Morgan Stanley has disclosed proposed fees for its planned spot Ethereum and Solana exchange-traded funds, adding new details to amended registration statements filed with the U.S. Securities and Exchange Commission.

The filings show that the proposed Ethereum and Solana ETFs would charge a 0.14% annual unitary fee, placing them among the lower-cost crypto ETF products if approved for trading. The fee would accrue daily and be paid in cash, while Morgan Stanley Investment Management would cover most standard operating expenses from that charge.

The updates mark another step in the review process for the Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust, which is expected to trade on NYSE Arca under the ticker MSOL. The Ethereum product’s filing also lists NYSE Arca as the exchange and confirms the ticker MSSE.

Morgan Stanley Sets Low Fee for ETH and SOL Funds

The 0.14% annual fee is one of the main additions in the amended filings because earlier versions did not provide a final expense figure. The structure mirrors the fee level attached to Morgan Stanley’s Bitcoin Trust, which was positioned as one of the lowest-cost spot Bitcoin ETF options after its debut.

The unitary fee means the delegated sponsor would generally pay expenses tied to administration, custody, transfer agency, trustees, marketing, legal work, audit services and listing costs. Certain costs, including litigation or unusual expenses, may remain outside the standard fee structure.

The fee disclosure gives investors and analysts a clearer way to compare the proposed Morgan Stanley Ethereum and Solana ETFs with competing products. Fee competition has become a major feature of the crypto ETF market, especially after the launch of spot Bitcoin funds pushed asset managers to lower expense ratios.

The filings also describe creation and redemption mechanics, including baskets of 10,000 shares. The funds are expected to support primarily cash creations and redemptions through counterparties, while also allowing in-kind mechanisms under certain conditions.

Staking Rewards Would Flow Mostly to Investors

Morgan Stanley’s proposed Ethereum and Solana ETFs would include staking as part of their structure. A portion of the underlying ETH and SOL holdings may be staked through third-party providers, with rewards added to each fund’s net asset value.

The filings indicate that 95% of staking rewards would flow back to investors, while 5% would be allocated to custodians and staking service providers. This structure gives shareholders exposure to potential staking income while leaving operational responsibilities to approved service providers.

For the Ethereum ETF, named providers include Figment, Galaxy Blockchain Infrastructure and Coinbase Canada. The filing also names BNY Mellon and Coinbase Custody as Ether custodians, with BNY Mellon serving as cash custodian, administrator and transfer agent.

The filings note that the delegated sponsor would have discretion over staking allocation and may adjust methods if risk controls allow. The documents also describe risks linked to staking, including slashing, validator performance, delays, and operational issues involving third-party providers.

Staking remains a closely watched element of spot crypto ETF filings because it may affect fund returns, investor demand and regulatory review. The inclusion of staking rewards would separate these products from passive spot funds that only track asset prices without yield-related features.

Filings Add to Morgan Stanley Crypto ETF Push

The amended filings come as Morgan Stanley expands its digital asset product strategy across Bitcoin, Ethereum and Solana. The firm previously launched the Morgan Stanley Bitcoin Trust and has also moved toward broader crypto access through its wealth and trading platforms.

Morgan Stanley has also partnered with Galaxy Digital to build a crypto-to-ETF conversion pipeline for institutional wealth clients. That structure is intended to let qualifying clients move physical Bitcoin, Ether or Solana holdings into regulated ETF shares without creating taxable capital gains events at the point of conversion, depending on final structure and tax treatment.

The filings arrive during a wider expansion of crypto ETF activity in the United States. The SEC recently approved T. Rowe Price’s multi-asset crypto ETF, which can include Bitcoin, Ethereum, Solana, XRP, Dogecoin, Shiba Inu and up to 15 digital assets.

Traditional finance firms are now competing more directly with crypto-native platforms. Bloomberg ETF analyst Eric Balchunas previously noted that Morgan Stanley’s E*Trade crypto trading plan would charge 50 basis points per trade, below Schwab’s 75 basis point level, reflecting broader competition over crypto access and pricing.

The amended Ethereum and Solana ETF filings do not provide a firm launch date. They remain subject to SEC review, public filing updates and exchange approval processes before trading can begin.

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