Blab Crypto
Morgan Stanley Sets Lowest Sponsor Fees for Proposed Spot Ethereum and Solana ETFs, Adds Staking Provisions
On June 18, 2026, Morgan Stanley filed amended S‑1 registration statements for two new spot‑cryptocurrency exchange‑traded funds (ETFs): a spot Ethereum trust (ticker MSSE) and a spot Solana trust (ticker MSOL). The revisions—Morgan Stanley’s second round of changes for both applications—introduce a sponsor fee of 0.14 % for each fund, the lowest fee announced for U.S. spot Ethereum and Solana ETFs.
The filings also bring staking into the equation. Morgan Stanley has enlisted Figment Inc., Galaxy Blockchain Infrastructure LLC and Coinbase Canada Inc. as staking service providers. The trust plans to stake a portion of its underlying ETH and SOL holdings, allocating a 5 % staking fee to the service providers and custodians while keeping 95 % of the rewards for the fund.
By setting the fee at 0.14 %, the proposed funds sit below the current low‑cost competitors in each market. Grayscale’s Mini Ethereum Trust (ticker ETH) charges 0.15 %, and Franklin Templeton’s Solana ETF (ticker SOEZ) charges 0.19 %. Matching the 0.14 % fee of its recently launched spot Bitcoin trust (MSBT), Morgan Stanley is positioning the new products to compete on price—a strategy that has already proven effective for its Bitcoin ETF, which attracted $300.7 million in cumulative net inflows by June 18.
Staking is a key differentiator for the Ethereum and Solana ETFs. Because both blockchains use proof‑of‑stake consensus, staking can generate additional yield that unstaked funds do not capture. However, staking introduces operational and regulatory complexity. Issuers must disclose how assets are staked, how rewards are handled, and how risks such as validator slashing, liquidity constraints and custody arrangements are managed. The inclusion of multiple staking providers suggests Morgan Stanley is building redundancy into the structure, potentially reducing reliance on any single validator or infrastructure partner.
The amended filings signal that Morgan Stanley is expanding its crypto‑ETF lineup beyond Bitcoin. The bank’s Bitcoin trust, which began trading on NYSE Arca on April 8, 2026 under ticker MSBT, was the first U.S. bank to issue a spot Bitcoin ETF. The new Ethereum and Solana filings follow a pattern of fee competition that has become a clear battleground in the crypto‑ETF market. Spot products typically hold the same underlying asset, so price, brand, liquidity, custody structure and distribution become the main points of differentiation. A lower sponsor fee gives Morgan Stanley a direct way to attract adviser platforms, institutional allocators and cost‑sensitive investors.
For investors, the main variables remain approval, launch timing, liquidity and final staking terms. The amended filings indicate that the applications are moving through active SEC review, with the issuer and regulator working through operational and disclosure issues before any potential launch. The inclusion of staking provisions also raises questions about how the funds will track the full economic return of the underlying assets, as staking rewards can affect net asset value.
In summary, Morgan Stanley’s amended S‑1 filings for the proposed spot Ethereum and Solana ETFs establish the lowest sponsor fee in each market and add staking provisions that could enhance returns but also increase operational complexity. The bank’s strategy mirrors its approach to Bitcoin ETFs, using price as an entry tactic to pressure rivals and potentially accelerate institutional adoption. The funds remain subject to SEC approval, and the next steps will involve final regulatory review, potential market‑making arrangements and the establishment of custody and staking operations.
The filings also bring staking into the equation. Morgan Stanley has enlisted Figment Inc., Galaxy Blockchain Infrastructure LLC and Coinbase Canada Inc. as staking service providers. The trust plans to stake a portion of its underlying ETH and SOL holdings, allocating a 5 % staking fee to the service providers and custodians while keeping 95 % of the rewards for the fund.
By setting the fee at 0.14 %, the proposed funds sit below the current low‑cost competitors in each market. Grayscale’s Mini Ethereum Trust (ticker ETH) charges 0.15 %, and Franklin Templeton’s Solana ETF (ticker SOEZ) charges 0.19 %. Matching the 0.14 % fee of its recently launched spot Bitcoin trust (MSBT), Morgan Stanley is positioning the new products to compete on price—a strategy that has already proven effective for its Bitcoin ETF, which attracted $300.7 million in cumulative net inflows by June 18.
Staking is a key differentiator for the Ethereum and Solana ETFs. Because both blockchains use proof‑of‑stake consensus, staking can generate additional yield that unstaked funds do not capture. However, staking introduces operational and regulatory complexity. Issuers must disclose how assets are staked, how rewards are handled, and how risks such as validator slashing, liquidity constraints and custody arrangements are managed. The inclusion of multiple staking providers suggests Morgan Stanley is building redundancy into the structure, potentially reducing reliance on any single validator or infrastructure partner.
The amended filings signal that Morgan Stanley is expanding its crypto‑ETF lineup beyond Bitcoin. The bank’s Bitcoin trust, which began trading on NYSE Arca on April 8, 2026 under ticker MSBT, was the first U.S. bank to issue a spot Bitcoin ETF. The new Ethereum and Solana filings follow a pattern of fee competition that has become a clear battleground in the crypto‑ETF market. Spot products typically hold the same underlying asset, so price, brand, liquidity, custody structure and distribution become the main points of differentiation. A lower sponsor fee gives Morgan Stanley a direct way to attract adviser platforms, institutional allocators and cost‑sensitive investors.
For investors, the main variables remain approval, launch timing, liquidity and final staking terms. The amended filings indicate that the applications are moving through active SEC review, with the issuer and regulator working through operational and disclosure issues before any potential launch. The inclusion of staking provisions also raises questions about how the funds will track the full economic return of the underlying assets, as staking rewards can affect net asset value.
In summary, Morgan Stanley’s amended S‑1 filings for the proposed spot Ethereum and Solana ETFs establish the lowest sponsor fee in each market and add staking provisions that could enhance returns but also increase operational complexity. The bank’s strategy mirrors its approach to Bitcoin ETFs, using price as an entry tactic to pressure rivals and potentially accelerate institutional adoption. The funds remain subject to SEC approval, and the next steps will involve final regulatory review, potential market‑making arrangements and the establishment of custody and staking operations.
