- Morgan Stanley has updated its Ethereum and Solana ETF filings, naming Coinbase as the custodian and staking provider while maintaining a competitive 0.14% annual fee.
- If approved by the SEC, the funds would offer investors regulated exposure to Ethereum and Solana with staking rewards.
Morgan Stanley has taken another step toward launching spot Ethereum and Solana exchange-traded funds (ETFs) by updating its regulatory filings with the SEC. The latest amendments confirm Coinbase will serve as the custodian and staking facilitator, while BNY Mellon will act as a joint custodian.
The revised filings also show Morgan Stanley is maintaining one of the lowest ETF fees in the market, signaling its intention to compete aggressively for investor interest if the funds receive regulatory approval.
Morgan Stanley Updates Ethereum and Solana ETF Filings
Morgan Stanley submitted fresh amendments to its S-1 registration statements on July 14, marking the third update since the company first filed for the products in January.
According to the filing, Coinbase will safeguard the digital assets and facilitate staking services for both funds. BNY Mellon has also been named as a joint custodian for the proposed Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust.
The repeated amendments show that Morgan Stanley continues to work closely with the SEC as regulators review the applications. While the SEC has not approved the funds yet, the multiple filing updates indicate that both sides are continuing discussions.
Staking Could Increase Returns for Investors
One of the key features of the proposed ETFs is staking.
Morgan Stanley plans to stake between 50% and 80% of the Ethereum held by the trust under normal market conditions. Meanwhile, the Solana ETF could stake up to 100% of its SOL holdings, while keeping enough assets available to meet redemption requests and cover operating expenses.
Under the proposed structure, staking providers and custodians would receive 5% of the staking rewards, while the trusts would retain the remaining 95% for investors. Earlier versions of the filings also listed Figment Inc., Galaxy Blockchain Infrastructure LLC, and Coinbase Canada Inc. as staking service providers.
If approved, the Ethereum ETF is expected to trade under the ticker MSSE, while the Solana ETF would trade on NYSE Arca under the ticker MSOL.
Low Fees Could Strengthen Morgan Stanley’s Position
Morgan Stanley is also using pricing as a competitive advantage.
Both the Ethereum and Solana ETFs carry an annual sponsor fee of 0.14%, slightly below Grayscale’s 0.15% Ethereum ETF fee. The pricing remains among the lowest in the market and reflects growing competition among ETF issuers.
The strategy has already produced positive results for the firm’s Bitcoin ETF. Morgan Stanley launched its Bitcoin Trust (MSBT) with the same 0.14% fee in April 2025, attracting more than $300 million in inflows shortly after its debut. The bank appears to be following the same approach as it expands its digital asset investment offerings.
SEC Approval Remains the Final Hurdle
Despite the progress, Morgan Stanley’s Ethereum and Solana ETFs cannot launch until the SEC grants final approval.
The latest amendments move the applications closer to that goal, but regulators have not provided a timeline for a decision. Market participants will now watch for another round of filings that could reveal the final launch details.
If approved, the staking-enabled ETFs would become available through Morgan Stanley’s network of approximately 19,000 financial advisers, giving investors another regulated way to gain exposure to Ethereum and Solana while potentially earning staking rewards.
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Disclaimer:
This article is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry risk, and readers should conduct their own research before making any investment decisions.