Morgan Stanley spot Ethereum and Solana ETFs with 0.14% fees

Morgan Stanley has filed amended applications with the U.S. Securities and Exchange Commission for two new spot cryptocurrency exchange-traded funds, one tracking Ethereum and the other tracking Solana. The filings, submitted this week, propose the lowest sponsor fees in the market for such products and include a structure to generate staking rewards for investors.

The proposed Morgan Stanley Ethereum Trust, ticker MSSE, and Morgan Stanley Solana Trust, ticker MSOL, would each carry an annual sponsor fee of 0.14%. This undercuts the current lowest fees in their respective categories, which are 0.15% for Grayscale's Mini Ethereum Trust and 0.19% for Franklin Templeton's Solana ETF. The filings represent the second amendments to applications originally submitted in January.

A key feature of both proposed funds is a built-in staking mechanism. The trusts plan to stake a portion of their holdings to earn additional yield. Under the proposed structure, 95% of all staking rewards would remain inside the trust to benefit shareholders directly. The remaining 5% would be allocated to staking infrastructure providers, which are named as Figment Inc., Galaxy Blockchain Infrastructure LLC,...