Key points
- On Tuesday, Morgan Stanley filed an updated Form S-1/A for its 0.14% Ethereum and Solana ETFs.
- Along with lower fees, Morgan Stanley has included staking provisions for both ETH and SOL ETFs.
- In both filings, the company named BNY Mellon and Coinbase Custody as joint custodians.
On July 14, Morgan Stanley, American multinational investment bankupdated S-1/A filings for Ethereum and Solana exchange-traded funds (ETFs) have been shared. With this deposit, the official launch of other Ethereum and Solana ETFs is drawing closer.
Morgan Stanley makes new adjustments to ETH and SOL ETF deposits
Morgan Stanley filed updated registration statements with the Securities and Exchange Commission today for its proposed Ethereum and Solana investment funds. New changes in both registries provide more operational information about Morgan Stanley Ethereum Fund and Morgan Stanley Solana Fund While the bank is moving forward with its cryptocurrency ETF offerings after witnessing the success of Bitcoin ETFs.
The new filings make some amendments to previous S-1 filings from January 2026. These new filings share key details, including the custody arrangements, fee structures and foreclosure provisions for both products.
In both filings, Morgan Stanley clearly names BNY Mellon and Coinbase Custody as joint custodians. This will help the issuer combine traditional banking infrastructure with cryptocurrency custody services.
The sponsorship fee for the Ethereum and Solana ETFs will be approximately 0.14% per year, compounding daily based on net asset value. This rate would place Morgan Stanley’s products among lower-cost alternatives in similar categories. Morgan Stanley Investment Management Inc. will also work. Serves as the mandated sponsor of both ETFs.
The most impressive feature of Ethereum ETFs is their rewards. The Ethereum Trust includes provisions to allocate a portion of the holdings through approved third-party service providers. ETH will be placed in the network’s smart contracts, where validators will work externally. However, the filing clearly mentioned minimizing the risks, which could occur in the potential loss of ETH due to validator failure or protocol violations.
According to official filings, Morgan Stanley will list the Ethereum ETF and Solana ETF on NYSE Arca under the tickers MSSE and MSOL, respectively.
Trusts are structured as grantor trusts that hold spot and SOL ETFs directly. The updates come after the SEC’s comments on custody, fees and yield-generating features during the review process.
Morgan Stanley expands Crypto ETF portfolio with ETH and SOL filings
Earlier this year, Morgan Stanley Announce The launch of a Bitcoin ETF, which gave the company direct exposure to spot cryptocurrency products. Ethereum and Solana deposits build on this foundation while competing in a market that has seen impressive growth in the past few months.
Total net inflow of bitcoin ETFs has risen to over $51.31 billion, according to Quinglass. The total daily net flow is currently around $21.10 million. Despite the ongoing bearish momentum in the cryptocurrency market, Bitcoin (BTC) ETFs are still seeing steady inflows, demonstrating institutional investors’ confidence in cryptocurrency ETFs.
However, ETH and SOL ETFs failed to create buzz among institutional investors. As of now, cumulative net inflows of Ethereum ETFs have risen to over $2.65 billion, while Solana ETFs stand at around $1.13 billion.
In the past few months, several issuers have filed or amended S-1s with the Securities and Exchange Commission. It focuses on competitive fees and staking mechanisms.
Morgan Stanley currently manages over $1.5 trillion in advisory assets. This could make it one of the largest issuers of SOL and ETH ETFs.
The most important feature of ETH and SOL ETFs is their rewards or returns. This comes after the SEC shared a key statement about some liquid hedging activity in 2025.
in Official documentThe Securities and Exchange Commission stated that “It is the Department’s view that “Liquid Pledge Activities” (as defined below) in connection with the Pledge Protocol do not involve the offer and sale of securities within the meaning of Section 2(a)(1) of the Securities Act of 1933 (“Securities Act”) or Section 3(a)(10) of the Securities Exchange Act of 1934 (“Exchange Act”).“
However, regulators have asked issuers to balance investor returns against various risks such as downgrades, smart contract vulnerabilities, and custody. In the past, the SEC approved the signature in some cases after a lengthy review process.
In June, Morgan Stanley Wealth Management revealed A referral partnership with Galaxy Digital to offer a way for eligible customers to use in-kind creation of cryptocurrency exchange-traded products (ETPs).
