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DeFi

Morgan Stanley Launches Spot Ethereum and Solana ETFs

Published

2 weeks ago

on

Morgan Stanley has expanded its digital asset product suite with the launch of spot exchange-traded products tracking Ethereum (ETH) and Solana (SOL). The funds began trading on NYSE Arca under the tickers MSSE (Ethereum) and MSOL (Solana), featuring a competitive 0.14% fee structure — among the lowest available for comparable products.

Key Features

Both products offer direct exposure to the underlying assets while incorporating staking where applicable:

  • The Ethereum fund (MSSE) intends to stake between 50% and 80% of its ETH holdings.
  • The Solana fund (MSOL) may stake up to 100% of its SOL.
  • Approximately 95% of staking rewards are expected to pass through to shareholders, with Morgan Stanley retaining none of the rewards for itself.

The low fee undercuts several existing offerings in both categories and positions the funds competitively against established providers.

Institutional Expansion Beyond Bitcoin

The launch builds on Morgan Stanley’s earlier Bitcoin ETP (MSBT), which has gathered hundreds of millions in assets since debuting earlier in 2026. By adding Ethereum and Solana products, the firm now offers institutional and retail investors streamlined access to three of the largest digital assets by market capitalization through a traditional brokerage framework.

This development arrives amid ongoing discussions around capital rotation between Bitcoin and other major Layer-1 assets. Recent flow data had shown periods of outflows from Bitcoin ETFs alongside more constructive activity in Ethereum vehicles, highlighting shifting investor preferences.

Market Implications

Morgan Stanley’s entry — backed by its extensive wealth management and advisor network — signals continued traditional-finance interest in assets beyond Bitcoin. The combination of low fees, staking yield potential, and broad distribution channels could help drive additional institutional capital into ETH and SOL over time.

Analysts will closely monitor early flows into MSSE and MSOL as an indicator of demand for non-Bitcoin crypto ETPs.

Outlook

The launches reinforce the maturing infrastructure for regulated crypto investment products in the U.S. As more traditional institutions expand their offerings, competition on fees, staking features, and distribution is expected to intensify — potentially benefiting investors through lower costs and greater product choice.

Stay tuned to CoinReporter.io for updates on ETF flows, institutional product launches, and their impact on Ethereum, Solana, and the broader crypto market.

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The content on CoinReporter.io is for informational purposes only and is not financial or investment advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. CoinReporter.io and its authors are not liable for any losses resulting from actions based on this website’s content.

Crypto

Fidelity Moves to Add Staking and Quarterly Payouts to Ethereum ETF

Published

17 hours ago

on

August 13, 2026

By

Fidelity has filed an amended registration statement seeking to enable staking of the ether held in its spot Ethereum ETF (FETH) and to distribute staking rewards as quarterly cash payments to shareholders, pending SEC approval.

FETH currently holds approximately $898–$900 million in net assets. Under the proposed structure, the fund could stake up to 100% of its ETH under normal market conditions, while retaining sufficient unstaked ether to meet redemptions, expenses, and other liquidity needs. No minimum staking threshold is set.

The amendment updates the fund’s objective to target the Fidelity Ethereum Reference Rate plus staking yield (net of fees). Gross staking rewards would be split with the fund retaining 85% and the remaining 15% allocated to the sponsor, custodians, and node operators (including Blockdaemon, Figment, and Galaxy). Net rewards would first cover fund expenses, with any remainder distributed to shareholders as quarterly cash payouts. The fund may sell some ETH if needed to generate cash for those distributions. Distributions are not guaranteed.

The move follows an IRS safe-harbor framework that allows qualifying crypto trusts to stake assets without losing grantor-trust tax status. Fidelity joins other issuers that have pursued staking features in existing Ethereum products, while some competitors have opted for separate staking-focused vehicles.

Successful approval would mark a meaningful step toward yield-bearing regulated Ethereum products in the U.S., potentially enhancing the competitiveness of spot ETH ETFs by passing through a portion of network staking rewards to shareholders in cash form.

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