Morgan Stanley’s first Ether and Solana exchange-traded products generated roughly $38 million in combined trading value in their debut session, entering two cryptocurrency fund categories where BlackRock and Bitwise already hold substantial leads. The launches put Morgan Stanley’s wealth-management reach and low fee structure to an early test, particularly as staking rewards become a more prominent feature of token funds.
The Morgan Stanley Ether Trust, trading under the ticker MSSE, and the Morgan Stanley Solana Trust, MSOL, began trading on NYSE Arca at about $20 a share. MSSE traded 933,715 shares and recorded $5.15 million in net inflows, while MSOL traded 951,216 shares, representing about $19 million in turnover, without a reported creation of new shares.
The two products were introduced on July 28 by Morgan Stanley Investment Management, expanding a crypto fund lineup that began with the Morgan Stanley Bitcoin Trust, or MSBT, in April. Morgan Stanley said MSBT had surpassed $400 million in assets under management by the time the new funds arrived.
Ether fund captures a sizeable share of daily inflows
MSSE’s $5.15 million of net inflows represented more than one-third of the roughly $14.5 million that entered U.S. Ether-related funds during the session, according to SoSoValue. BlackRock’s staking-enabled ETHB recorded $5.9 million in inflows, while the larger iShares Ethereum Trust, ETHA, added $3.5 million.
That initial flow places MSSE among the more active Ether products on its first day, though it remains far smaller than the category’s established leaders. SoSoValue records $11.4 billion in cumulative net inflows for ETHA, while ETHB has accumulated $529 million.
MSSE’s appeal rests partly on a relatively low published fee and its ability to stake Ether. Its prospectus says the trust generally expects to stake between 50% and 80% of its Ether holdings, with 80% set as its maximum target. The allocation may change when the trust faces redemptions, when assets are waiting through on-chain unbonding periods, or when liquidity conditions require a larger pool of readily available Ether.
Staking involves committing tokens to help secure a proof-of-stake blockchain in return for rewards. For a fund, the process creates an additional source of return but also introduces operational considerations, including validator selection, unbonding timelines and the need to hold liquid tokens for share redemptions.
Morgan Stanley plans to collect staking rewards in Ether and sell an equivalent amount of cryptocurrency to generate cash distributions. The trust expects to make monthly cash payments, subject to a minimum quarterly distribution schedule.
Solana launch arrives during sector outflows
MSOL entered a less favorable daily flow environment. SoSoValue recorded net outflows of $18.1 million across Solana-related funds during the same session, driven in part by redemptions from Bitwise’s BSOL. MSOL’s near-$19 million in trading value therefore did not translate into reported new share creation on day one.
The product allows Morgan Stanley to stake as much as 100% of its Solana holdings, while retaining tokens needed for operating liquidity. Like MSSE, it will convert staking rewards into cash for distributions.
Solana funds remain a smaller segment than Ether products, but the market is already concentrated. Farside Investors puts total Solana ETF assets at $1.12 billion, while BSOL has recorded $892 million of cumulative net inflows. Those figures give Bitwise a large liquidity and asset-base advantage over a newly listed competitor.
Morgan Stanley’s fee terms place both new trusts near the low end of the available staking-fund market. MSSE and MSOL each carry a 0.14% annual management fee, and Morgan Stanley does not take a direct share of staking rewards. Custody and staking providers together receive 5% of total rewards, with the balance retained by the trust before expenses and cash distributions.
The comparison matters because the management fee is only one part of a staking fund’s cost. A sponsor can charge a low annual fee but retain or direct a substantial portion of staking rewards to validators, custodians and other providers.
Fee structure puts pressure on incumbent products
Several competing Solana funds use higher management fees or larger staking-reward allocations. BSOL charges a 0.20% management fee and directs 6% of staking rewards to service providers, according to the comparison provided in Morgan Stanley’s fund materials. Grayscale’s GSOL charges 0.19% and allocates 7% of rewards, while Franklin Templeton’s SOEZ uses an 8% split.
On Ether, Grayscale’s lower-cost Ether fund lists a 0.15% management fee and a 6% staking-reward split. BlackRock’s ETHB has a standard 0.25% management fee and a 10% staking split. BlackRock also introduced a temporary lower fee beginning in March, charging 0.12% on the first $2.5 billion in assets for 12 months before its standard rate applies.
The practical difference for holders will depend on actual staking participation rather than headline yields alone. MSSE cannot stake its entire Ether portfolio under its stated 80% cap, while MSOL may stake nearly all of its Solana holdings when liquidity conditions permit. A higher staking rate can increase distributable rewards, though returns vary with network conditions, validator performance and the portion retained by service providers.
Morgan Stanley brings a large distribution network
The bank’s strongest advantage may lie beyond the exchange screen. Morgan Stanley has nearly 16,000 financial advisors overseeing $2.6 trillion in client assets, according to the firm. By the end of 2025, its wealth-management unit reported $7.4 trillion in total client assets across more than 20 million customers.
That network gives the issuer a potentially powerful channel for introducing its own listed crypto products to advisory clients already using Morgan Stanley’s platforms. It does not erase the liquidity advantages held by ETHA, ETHB and BSOL, but it gives the new funds a route to asset gathering that newer independent issuers often lack.
Early trading showed demand for both launches, with the Ether product attracting fresh capital while the Solana fund saw active secondary-market trading during a day of category-wide redemptions. The next measure will be whether that activity develops into sustained creations, especially as Morgan Stanley’s pricing and staking terms compete directly with products that have already built much larger asset bases.
Curious how Solana ETFs fit into this shift? Dive deeper with our guide on Solana ETFs and institutional adoption.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
