Morgan Stanley has amended its Securities and Exchange Commission filings for spot Ether and spot Solana exchange-traded funds, according to documents lodged on Thursday. The updates indicate the firm intends to compete aggressively on costโproposing fees of 0.14% for each product.
If approved and listed, the funds would join the growing US lineup of spot crypto ETFs, including a market for staking-enabled products tied to underlying assets. For investors weighing fund expense ratios, Morgan Stanleyโs latest fee positioning is notable because it aims to place its Ether and Solana offerings at or near the bottom of the current cost curve.
Key takeaways
- Morgan Stanley amended SEC Form S-1 filings for both spot Ether and spot Solana ETFs, proposing a 0.14% fee for each.
- Current lowest-fee spot Ether and Solana ETFs in the US charge 0.15% (Grayscale Ethereum Staking Mini ETF) and 0.19% (Franklin Solana ETF), respectively, per Farside Investors.
- Amended filings are the second update since January, a pattern often viewed as signaling the approval process is nearing completion.
- Bloomberg ETF analyst Eric Balchunas described Morgan Stanleyโs planned fees as the โcheapestโ in the US and worldwide.
- The filings name Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada as providers for staking services, with a 5% staking fee applied to rewards.
Proposed fee structure undercuts current ETF leaders
In its updated SEC paperwork, Morgan Stanleyโs plans for its spot crypto ETFs center on an expense ratio of 0.14%. The company filed amended Form S-1 statements for each ETF on Thursday, including:
- an Ether product
- a Solana product
The amendments are directly relevant to how much investors pay annually to hold the funds, and they also shape how the ETFs may compete for net inflowsโespecially as issuers increasingly differentiate themselves through fee levels and operational details.
Based on Farside Investors data, the current lowest-fee spot Ether ETF in the US charges 0.15%โthe Grayscale Ethereum Staking Mini ETF. On Solana, Farside Investors shows the lowest current fee is 0.19% for Franklin Solana ETF (SOEZ). Morgan Stanleyโs proposed 0.14% would, on its face, push both products below those benchmarks.
Bloomberg ETF analyst Eric Balchunas highlighted the implications of the pricing. In a post on X on Friday, he said the fees make the offerings โthe cheapest in [the] US and [the] world.โ
Why fee competition matters for a late-to-market issuer
Morgan Stanley is entering the spot crypto ETF market after early movers such as BlackRock and Fidelity established strong positions. According to the filings coverage in the article, this strategy aligns with how Morgan Stanley priced its spot Bitcoin ETF.
Its Bitcoin ETF launched in April with a 0.14% feeโlower than Grayscaleโs 0.15% on its mini Bitcoin product. That pricing choice appears designed to reduce friction for investors comparing products with similar market exposure.
Cointelegraph reported that Morgan Stanleyโs Bitcoin ETF posted a first-day inflow of $30.6 million, and that the fund has since accumulated total inflows of $331 million. Those figures were described as surpassing ETFs from Invesco, Franklin Templeton and CoinShares, which launched in January 2024.
While those Bitcoin performance figures do not guarantee similar outcomes for Ether or Solana, the pattern reinforces why investors often treat fee levels as more than a line item: lower expense ratios can translate into a more competitive total cost of ownership, which can influence investor allocations in ETF marketplaces.
Second amendment since January and what it can signal
These amendments mark the second time Morgan Stanley has updated its ETF filings since it first submitted for the products in January. In the spot crypto ETF market, additional amendments are commonly interpreted as part of the iterative process of addressing SEC questions and refining disclosuresโan activity many observers associate with increased likelihood of eventual approval.
The article notes that amendments frequently serve as a sign that the SEC may be approaching a decision. If approved, the proposed products would bring additional spot Ether and spot Solana ETF launches to the US marketโstated in the source as potentially becoming the 11th spot Ether ETF and the seventh spot Solana ETF to launch in the country.
Still, fee proposals and amendment frequency do not confirm approval timing. Investors should expect continued scrutiny of custody, staking mechanics, and disclosure completeness before any trading begins.
Staking service providers and the rewards fee
Morgan Stanleyโs latest filings also outline operational arrangements for staking. The documents, as described in the source, indicate that Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada will provide staking services for each of the ETFs.
Importantly, the staking economics in the filings differ from the fundโs standard expense ratio. The article states that each fund will charge a 5% staking fee for rewards earned by the product. That structure means investors may see two layers of costs: the ETF expense ratio (0.14%) and an additional fee applied to staking rewards.
For product identification, the source also specifies ticker names:
- Ether ETF: MSSE (called the Morgan Stanley Ethereum Trust)
- Solana ETF: MSOL (called the Morgan Stanley Solana Trust)
For potential investors, this distinction matters because staking-related fees can affect the net return profile of a staking-enabled ETF, even if the headline expense ratio is low.
With Morgan Stanley aiming to price its Ether and Solana ETFs at 0.14%, the next key question is whether the SEC approves both products on the proposed terms and how the staking fee layer is ultimately reflected in investor disclosures and expected net performance.
