Morgan Stanley adds spot Ethereum and Solana ETPs with 0.14% fee and staking benefits

Morgan Stanley announced on Tuesday that it is launching two new exchange‑traded products (ETPs) that track the spot price of Ethereum (ETH) and Solana (SOL). Both products carry an expense ratio of 0.14% and, unlike many crypto funds, include a mechanism to pass staking rewards on to investors.

Core development

The firm’s new offerings are structured as physically‑backed trusts that hold the underlying digital assets rather than futures contracts. According to the firm’s own release, the products are listed on European exchanges and are designed to give investors “direct, transparent exposure to the price movements of the underlying cryptocurrencies” Morgan Stanley. The expense ratio of 0.14% was highlighted by multiple outlets, positioning the fees as competitive within the nascent crypto‑ETP market NewsCord Yahoo Finance.

Both trusts also incorporate a staking component. The Ethereum ETP will earn yields from the network’s proof‑of‑stake consensus, while the Solana ETP will capture staking rewards generated by validators on the Solana blockchain. FXStreet noted that the inclusion of staking benefits “provides an additional source of return beyond price appreciation” FXStreet. The products are expected to be available to both retail and institutional investors through Morgan Stanley’s brokerage platform and partner networks.

The launch extends Morgan Stanley’s crypto‑focused product suite, which already includes a Bitcoin ETP that debuted earlier this year. ETF Trends reported that the new trusts are the latest addition to what the firm calls its “crypto ETF suite” ETF Trends. By bundling spot exposure with staking income, the firm aims to differentiate its offering from competing products that rely solely on price tracking.

Why it matters

Institutional interest in digital assets has surged, yet many investors remain wary of the operational complexities of holding crypto directly. Spot‑backed ETPs provide a regulated vehicle that can be bought and sold on traditional exchanges, sidestepping the need for private wallets or custodial services. The inclusion of staking rewards is particularly notable because it brings a traditionally on‑chain income stream into a regulated, off‑chain product.

Staking has become a significant source of yield in the crypto ecosystem, with major blockchains allocating a share of transaction fees or newly minted tokens to validators. By passing those rewards through the ETP, Morgan Stanley effectively offers a hybrid product that blends capital appreciation with income, a combination familiar to investors in conventional dividend‑paying stocks.

The 0.14% expense ratio also has implications for cost‑conscious investors. Traditional crypto funds often charge 0.5% or higher, while some crypto‑focused ETFs in the United States have launched at 0.75% or more. By keeping fees low, Morgan Stanley signals confidence that scale will offset operating costs, and it may pressure competitors to reconsider pricing.

Regulatory clarity remains a moving target. While the United States has yet to approve a Bitcoin or Ethereum ETF, European regulators have permitted ETPs that hold the assets directly. Morgan Stanley’s decision to list the products on European venues reflects a strategic choice to leverage a more permissive regulatory environment while still serving a global client base.

Reactions and viewpoints

Industry observers have generally welcomed the move as a sign that major banks are deepening their crypto footprints. Bloomberg‑level commentary, as reported by NewsCord, highlighted that “the addition of staking benefits could set a new standard for crypto‑linked products.” However, some analysts cautioned that the novelty of staking‑enabled ETPs introduces operational risk, such as validator performance and the volatility of reward rates.

From a client perspective, the products appear to address a demand for “simplified, regulated exposure” to high‑growth layer‑1 blockchains, according to a statement from Morgan Stanley’s wealth‑management division Morgan Stanley. The firm also emphasized that the trusts are “subject to the same oversight and reporting standards as other listed products,” a point meant to reassure investors wary of the perceived opacity of crypto markets.

Critics of the broader crypto‑ETP trend argue that the products could expose investors to regulatory backlash if authorities tighten rules around staking or on‑chain activities. Nonetheless, the consensus among the cited sources is that the launch marks a “significant step toward mainstreaming crypto assets within traditional portfolios.”

What’s next

Morgan Stanley plans to monitor investor uptake closely and may consider adding additional blockchain assets to its ETP lineup, according to the firm’s product roadmap disclosed in the ETF Trends article. The firm also indicated that it will work with custodians to ensure the security of the underlying tokens, a critical factor given recent high‑profile thefts in the crypto space.

Regulators in the United States are expected to continue reviewing proposals for spot Bitcoin and Ethereum ETFs. If approvals materialize, Morgan Stanley could leverage its existing infrastructure to launch U.S.-listed versions of the Ethereum and Solana products, potentially expanding the addressable market dramatically.

For investors, the immediate takeaway is that a low‑fee, staking‑enabled vehicle for two of the most actively traded layer‑1 chains is now available through a major Wall Street institution. Whether that translates into sustained inflows will depend on market performance, the stability of staking rewards, and the evolution of the regulatory landscape.