Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

Morgan Stanley Expands Crypto ETF Suite With New Ethereum & Solana Trusts

BY | ETF Database
5:33 am ET 07/28/26 | 14 VIEWS
On July 28, Morgan Stanley launched two new spot crypto ETFs on NYSE Arca. The Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL) provide spot price exposure to underlying ethereum (ETH) and solana (SOL), alongside additional distributions from staking yields. Both funds come to market with low expense ratios of 14 basis points.Key Takeaways Morgan Stanley launched the Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL) on NYSE Arca, both featuring expense ratios of 14 basis points. The funds offer investors both spot price exposure to ETH and SOL, respectively, as well as additional income generated through staking yields. 95% of those network rewards are distributed back to shareholders. MSSE and MSOL leverage Morgan Stanley’s massive wealth advisor network and direct-to-consumer retail channel to drive steady, fee-based inflows rather than relying solely on market sentiment. “Digital assets are becoming an increasingly important component of diversified investment portfolios,” said Amy Oldenburg, head of digital asset strategy at Morgan Stanley, in a press release. “As client interest in digital assets continues to grow, we’re focused on providing a range of digital asset solutions that allow investors to diversify their portfolios across traditional and decentralized asset classes while also adhering to Morgan Stanley’s standards for governance, infrastructure and risk management.”Spot Exposure and Staking YieldsThe trusts provide spot exposure to ETH or SOL by holding physical tokens in partnership with institutional crypto custodians. The performance of the underlying crypto holdings is measured by the CoinDesk Ether Benchmark 4PM NY Settlement Rate and the CoinDesk Solana Benchmark 4PM NY Settlement Rate. These benchmarks aggregate trade volume across major spot cryptocurrency exchanges at 4:00 p.m. ET to ensure share prices reflect true spot market values.  Beyond spot price tracking, both trusts generate income through staking yields. Staking allows the fund to commit a portion of underlying token reserves to validate transactions on the Ethereum and Solana blockchains, earning network-issued rewards. Roughly 95% of the staking yields are returned to shareholders through periodic distributions, with the remaining 5% covering institutional validator fees.  The funds return the same percentage of staking rewards to shareholders, but MSSE intends to stake between 50% to 80% of underlying ETH, capturing a base network reward rate around 1.7%. MSOL, however, plans to stake 100% of the Trust’s SOL due to Solana’s higher network reward rate of approximately 3.4%, according to Coinbase data. Building on Bitcoin SuccessMorgan Stanley’s expansion into ethereum and solana follows the success of the Morgan Stanley Bitcoin Trust (MSBT). While many spot Bitcoin ETFs have faced cooling demand and net outflows, MSBT has maintained strong inflows, adding $430.86 million in new assets since the fund’s inception in April. The sustained inflows are primarily due to the fund’s ultra-low expense ratio of 14 basis points and Morgan Stanley’s massive distribution network.  Morgan Stanley’s distribution efforts for the funds will likely benefit from the association with its advisory and self-directed platforms. The firm’s network includes 16,000 wealth advisors managing over $9 trillion in client assets and the brokerage platform E*TRADE. Additionally, Morgan Stanley’s ownership of E*TRADE provides a massive direct-to-consumer retail distribution channel for MSBT. With the fund’s low-cost expense ratio undercutting competing products and the firm’s in-house platform marketing that features MSBT prominently across trading dashboards and educational content, Morgan Stanley has a strong advantage when it comes to attracting self-directed retail capital into MSBT. With investors increasingly looking for yield alongside low-cost crypto exposure, Morgan Stanley is uniquely positioned to potentially capture market share within the ethereum and solana ETF markets.  For more news, information, and analysis, visit the Crypto Content Hub.

More Commentary

Semiconductor Outlook Bodes Well for This ETF
BY | ETF Database
8:11 am ET 07/28/26 | 21 VIEWS
Treasury Yield Nears 5% as Fed Shifts Course
BY | ETF Database
6:43 am ET 07/28/26 | 25 VIEWS
Why SPMO Stands Out in a Strong Momentum Year
BY | ETF Database
10:07 am ET 07/28/26 | 6 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.