The Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust are designed to give investors spot exposure through ordinary brokerage accounts without requiring them to buy tokens or mana
The Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust are designed to give investors spot exposure through ordinary brokerage accounts without requiring them to buy tokens or manage private keys. If the registration statements become effective, the shares are expected to trade on NYSE Arca under the tickers MSSE and MSOL.
The amended filings expand a crypto product line that already includes the Morgan Stanley Bitcoin Trust, which trades on NYSE Arca with the same 0.14% annual sponsor fee, and the Stablecoin Reserves Portfolio, launched in April to hold assets that meet the GENIUS Act’s reserve requirements. Unlike the passive Bitcoin fund, the proposed Ether and Solana trusts would also generate staking rewards, combining regulated brokerage access with potential onchain income. Together, the products show Morgan Stanley building a broader digital-asset strategy spanning token exposure, stablecoin reserve management and staking rather than treating Bitcoin as a standalone offering.
Both products are passive trusts. MSSE would follow the CoinDesk Ether Benchmark 4PM NY Settlement Rate, while MSOL would use the equivalent CoinDesk Solana benchmark. Their returns would reflect changes in the underlying token, less expenses, plus any net staking rewards.
The funds would not use leverage, derivatives or active trading strategies. BNY and Coinbase Custody are named as digital-asset custodians, with Morgan Stanley Investment Management serving as delegated sponsor.
Staking is the key difference from conventional spot crypto funds. Under normal market conditions, the Ethereum trust intends to stake between 50% and 80% of its ETH. The Solana product may stake up to 100% of its SOL, although it would periodically keep tokens unstaked to meet redemptions, expenses and distributions.
Figment, Galaxy Blockchain Infrastructure and Coinbase Canada are listed as staking providers for both products. The providers and custodians would collectively receive 5% of gross staking rewards, leaving 95% for the trusts. Net rewards would initially increase net asset value before being converted into cash for distributions intended monthly, but at least quarterly.
The prospectuses do not promise a fixed yield. Rewards depend on network conditions and the amount staked, while validator failures, penalties and delays in unstaking could reduce returns or complicate redemptions. Morgan Stanley may also suspend staking if it determines that the activity creates undue legal, regulatory or tax risk.
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Trump Urges Senate to Pass Clarity Act as August Recess NearsEach trust carries a proposed annual sponsor fee of 0.14% of net asset value, accrued daily and paid monthly in arrears. Morgan Stanley would cover ordinary operating costs from that fee, while litigation and other extraordinary expenses could still be charged to the trust. Investors may separately incur brokerage commissions when trading shares.
The July 14 submissions are Amendment No. 3 to the registration statements, not approvals. The SEC must declare the filings effective before shares can be sold, and the documents remain subject to further changes. The trusts would also not be registered under the Investment Company Act of 1940, meaning shareholders would not receive the protections attached to conventional registered investment companies.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice.
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