Morgan Stanley has filed updated registration statements for its planned Ethereum and Solana ETFs, revealing a 0.14% sponsor fee and details on how the funds will earn additional yield through staking. The filings indicate a significant step toward launching these new crypto-backed investment products.
These filings signal Morgan Stanley's continued expansion into the cryptocurrency ETF market, potentially increasing competition and offering investors new avenues to gain exposure to major altcoins like Ethereum and Solana with integrated yield-generating strategies.
Morgan Stanley has taken another step toward launching new cryptocurrency exchange-traded funds by filing amended S-1 registration statements for its planned Ethereum and Solana trusts. These filings reveal key details about the proposed ETFs, including their fee structure and staking mechanisms.
The Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust would each charge an annual sponsor fee of 0.14%, deducted daily and paid monthly from the fund's net asset value. This fee structure is designed to ensure that the majority of any income generated from staking the underlying crypto assets remains within the ETFs, potentially offering higher earnings for investors compared to funds that do not engage in staking.
The Ethereum filing specifies that custodians will place ETH holdings into staking smart contracts, with service providers managing validators. It also highlights the risk of "slashing," where staked Ether can be penalized and removed if network rules are violated. As of May 18, 2026, approximately 3.64 million ETH were in a queue for activation, leading to an estimated 63-day waiting period before newly staked ETH begins earning rewards. The Solana filing outlines a similar staking arrangement but does not specify a daily staking limit.
These developments come as various issuers continue to work with the SEC on new crypto ETF products. The SEC recently approved BlackRock's Bitcoin Premium Income ETF, which began trading on June 16. Following the success of spot Bitcoin ETFs, Morgan Stanley is reportedly considering altcoin ETFs, with speculation arising about a potential XRP ETF application.