Key facts
- Morgan Stanley has filed updated S-1 registration statements for its Ethereum and Solana ETFs.
- The proposed ETFs are expected to list and trade on NYSE Arca under tickers MSSE and MSOL, respectively.
- Both ETFs will have a sponsor fee of 0.14%.
- The Ethereum ETF plans to stake 50-80% of its holdings, while the Solana ETF plans to stake up to 100%.
- Coinbase Prime, Coinbase Custody, The Bank of New York Mellon, and Figment are among the service providers mentioned.
Morgan Stanley has taken significant steps toward launching its spot Ethereum and Solana exchange-traded funds (ETFs) by filing updated registration statements with the U.S. Securities and Exchange Commission (SEC). These amendments, particularly the third for the Ethereum ETF filed on July 14, suggest that the launch of these crypto-backed products could be imminent.
The proposed Ethereum ETF is slated to trade on NYSE Arca under the ticker symbol MSSE. The filings detail updated agreements with key service providers, including Coinbase Prime as the delegated sponsor and Coinbase Custody for custodial services. The Bank of New York Mellon will also serve as a custodian. The ETF will feature a sponsor fee of 0.14% and intends to stake between 50% and 80% of its Ether holdings through providers like Figment, Galaxy Blockchain, and Coinbase Canada. Notably, staking reward distribution mechanisms are designed to benefit investors, with staking service providers and custodians receiving only 5% of the rewards.
Similarly, Morgan Stanley has updated its S-1 filing for a spot Solana ETF, which is also expected to list on NYSE Arca under the ticker MSOL. This ETF will also carry a 0.14% management fee and plans to stake up to 100% of its Solana holdings with similar providers. The operational and service provider structures for the Solana ETF appear to mirror those of Morgan Stanley's existing Bitcoin ETF, which currently holds over $357 million in assets.
James Seyffart, a Bloomberg ETF analyst, commented that the updates to the documentation for both the Ethereum and Solana ETFs indicate that their launch is likely approaching soon.