Morgan Stanley Investment Management has expanded its digital asset lineup with the launch of the Morgan Stanley Ethereum Trust (NYSE:MSSE) and Morgan Stanley Solana Trust (NYSE:MSOL), introducing what Bloomberg Intelligence ETF analyst Eric Balchunas called the biggest Ethereum and Solana ETF launches since the initial spot cryptocurrency ETFs.
The two ETFs began trading on Tuesday and seek to track the performance of ether and Solana’s SOL token, respectively. Each fund carries an expense ratio of 0.14%, making them the lowest-cost products in their categories, according to Balchunas.
Cheapest Ether, Solana ETFs on the Market
The launches follow Morgan Stanley’s entry into the spot Bitcoin ETF market earlier this year with the Morgan Stanley Bitcoin Trust (NYSE:MSBT). The firm said the fund had amassed more than $381 million in assets under management as of July 16, just four months after launch.
Balchunas noted on X that the Bitcoin ETF is already approaching $400 million in assets, despite debuting during what he described as the “middle of winter” for crypto markets.
Why Morgan Stanley’s Entry Matters
Beyond pricing, Balchunas argued the launches could have an outsized impact because of Morgan Stanley’s vast wealth management platform.
“In my opinion, Morgan Stanley is the biggest ether and sol launch since the initial ETFs, just as their bitcoin launch was more notable since IBIT, simply because of their sheer size and reach,” he said. “They have 16,000 financial advisors managing $7 trillion. The biggest wirehouse on the planet.”
The firm’s distribution network could help broaden adoption of crypto investment products among financial advisors and retail investors.
Staking Rewards and Growing ETF Platform
Both MSSE and MSOL intend to stake a portion of their underlying ether and SOL holdings to generate staking rewards. Morgan Stanley said it will not retain any portion of those rewards, allowing them to accrue entirely to the funds.
MSSE will track the CoinDesk Ether Benchmark 4PM NY Settlement Rate, while MSOL will follow the CoinDesk Solana Benchmark 4PM NY Settlement Rate.
The launches give Morgan Stanley exchange-traded products linked to Bitcoin, Ether and Solana—three of the world’s largest digital assets by market capitalization.
“Digital assets are becoming an increasingly important component of diversified investment portfolios,” Amy Oldenburg, head of digital asset strategy at Morgan Stanley, said in a statement. She added that the firm aims to provide investors with diversified crypto exposure while maintaining its standards for governance, infrastructure and risk management.
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