Morgan Stanley has updated its filings with the U.S. Securities and Exchange Commission for proposed spot Ethereum and Solana ETFs, revealing a 0.14% sponsor fee for both products, the lowest currently disclosed in their respective categories.
The amended S-1 filings, the second revision since January, follow the firm’s earlier Bitcoin ETF launch and signal continued progress toward regulatory approval.
fee strategy sets new pricing floor
The proposed fee undercuts existing products, with Grayscale’s Mini Ethereum Trust charging 0.15% and Franklin Templeton’s Solana ETF at 0.19%, according to SoSoValue data. The pricing move positions Morgan Stanley as an aggressive competitor aiming to attract flows through lower costs.
The firm’s Bitcoin Trust, launched in April with the same 0.14% sponsor fee, has already recorded $300.7 million in net inflows as of June 18.
staking integration adds yield component
A key feature of the proposed ETFs is staking, which would allow a portion of ETH and SOL held by the funds to generate additional rewards. The filings name Figment Inc., Galaxy Blockchain Infrastructure LLC, and Coinbase Canada Inc. as staking providers.
Under the structure, 95% of staking rewards would remain within the funds, while 5% would go to custodians and service providers. This introduces an income component not present in spot Bitcoin ETFs.
Recent network data suggests Ethereum staking yields range between roughly 1.8% and 4%, while Solana yields are higher at around 6.5%. This could influence how traders assess these assets compared to non-yielding alternatives.
product details and market positioning
The Ethereum ETF would trade under the ticker MSSE, while the Solana ETF would use MSOL, pending approval. The filings indicate ongoing engagement with regulators as Morgan Stanley refines disclosures ahead of potential launches.
The inclusion of staking and lower fees reflects a broader strategy to differentiate these offerings in an increasingly competitive ETF market.
implications for the ETF landscape
Morgan Stanley’s pricing is likely to pressure other asset managers to reconsider fee structures. Products from firms such as BlackRock, ARK, and Fidelity may face scrutiny from traders if they maintain higher costs.
At the same time, demand for crypto ETFs has recently weakened. Spot Bitcoin ETFs saw net outflows of about $319 million during the week of June 8 to 12, and May marked the weakest month of 2026 with $2.43 billion in total outflows.
New product structures, particularly those offering yield, could help revive interest if approved.
operational considerations for ethereum staking
The filings also highlight a delay tied to Ethereum’s validator activation queue. As of May 18, 2026, about 3.64 million ETH was waiting to be staked, implying a delay of roughly 63 days before new assets begin generating rewards.
This lag may limit the immediate income potential of the proposed Ethereum ETF following launch.
Want deeper insight into Solana products? Explore how a potential Solana ETF could reshape markets in this detailed guide.
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