Morgan Stanley has taken a significant step towards broadening institutional access to digital assets, submitting amended S-1 registration statements for its proposed spot Ethereum and Solana Exchange-Traded Funds (ETFs) on July 14, 2026. This latest move signals a launch is “pretty close,” according to Bloomberg ETF analyst James Seyffart.
The financial giant is aiming to disrupt the competitive crypto ETF market with an aggressive staking framework and notably low fees for both its new offerings.
Aggressive staking model challenges rivals
The updated filings with the U.S. Securities and Exchange Commission (SEC) detail how Morgan Stanley Investment Management plans to offer investors exposure to Ethereum and Solana, complete with yield generation through staking. This development is particularly impactful for the Ethereum ecosystem, as earlier spot Ethereum ETF approvals notably excluded staking capabilities.
Morgan Stanley’s proposed ETFs, the Morgan Stanley Ethereum Trust ETF (MSSE) and the Morgan Stanley Solana Trust ETF (MSOL), stand out due to their comprehensive staking provisions. The Ethereum Trust expects to stake a substantial 50% to 80% of its Ether under normal operating conditions. This marks a significant departure from initial spot Ethereum ETF offerings.
Similarly, the Solana Trust could stake up to 100% of its SOL holdings, while maintaining a liquid portion for redemptions and fees. Custodial and staking service providers, including Coinbase and BNY Mellon as co-custodians, alongside Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada as staking service providers, would receive 5% of the staking rewards.
The remaining 95% of these rewards would then be allocated directly to each trust, benefiting investors.
Pioneering staking for Ethereum ETF investors
This aggressive staking strategy represents a crucial evolution for spot Ethereum ETFs. When the SEC initially approved the listing and trading of eight spot Ethereum ETFs in May 2024, trading commenced around July 23, 2024, but with a prohibition on staking ETH within the ETFs.
The subsequent SEC guidance on May 29, 2025, clarifying that certain blockchain staking activities do not fall under securities laws, appears to have paved the way for this more comprehensive approach.
For investors, this means the potential to gain exposure to Ethereum’s price appreciation while also participating in the network’s security and earning staking rewards, all within a regulated and easily accessible ETF wrapper. It could attract a new wave of institutional capital to the Ethereum network.
Undercutting the competition with low fees
Beyond staking, Morgan Stanley is clearly focused on capturing market share through a highly competitive fee structure. Both the Morgan Stanley Ethereum Trust ETF and the Morgan Stanley Solana Trust ETF will levy an annual sponsor fee of just 0.14%. This fee is positioned as the lowest among current rivals in the US market for both asset classes.
For context, the Grayscale Ethereum Staking Mini ETF (ETH) carries a 0.15% fee, while Franklin Templeton’s spot Solana ETF (SOEZ) charges 0.19%. This strategic pricing mirrors Morgan Stanley’s successful launch of its spot Bitcoin ETF, the Morgan Stanley Bitcoin Trust ETF (MSBT), which debuted with the same 0.14% sponsor fee in April.
The MSBT has since attracted over $380 million in net inflows, demonstrating the power of a low-cost approach in the burgeoning crypto ETF space.
Lessons from Bitcoin ETF success
The firm’s experience with its Bitcoin Trust ETF provides a clear blueprint. By offering a competitive fee from the outset, Morgan Stanley established a strong foothold in the spot Bitcoin market. This approach is now being extended to Ethereum and Solana, signalling an aggressive play to dominate these growing segments of the crypto ETF landscape.
It suggests a belief that fee compression will be a defining characteristic of this asset class.
Morgan Stanley has already established itself as an active participant in the broader crypto market. The firm recommends Bitcoin allocations of 0-2% in some portfolios, rising to 2-4% in more aggressive ones. Its “Bitcoin Banking Adoption Index” by Strategy Inc. places Morgan Stanley in the upper tier of financial institutions embracing Bitcoin, scoring 43%.
Regulatory engagement and approval outlook
The submission of amended S-1 registration statements is a critical step in the SEC’s approval process. Successive S-1 updates typically indicate active engagement between regulators and the applicant, suggesting that the SEC is reviewing and providing feedback on the filings. This iterative process often precedes a final approval decision.
Bloomberg ETF analyst James Seyffart’s assessment that a launch is “likely getting pretty close” reflects this pattern of regulatory interaction. However, it’s important to note that the SEC’s final approval remains pending, and no specific timeline has been publicly committed.
The SEC’s review process for 19b-4 filings generally involves a 21-day public comment period, an initial 45-day deadline, and potential extensions reaching up to 240 days.
Paving the way for broader crypto ETFs
The path for spot Ethereum and Solana ETFs has been cleared by previous regulatory milestones. The SEC approved 19b-4 forms for eight spot Ethereum ETFs in May 2024, with trading beginning around July 23, 2024. Then, U.S.
spot Solana ETFs began trading in October 2025, following new generic listing standards for spot cryptocurrency ETFs approved in September 2025. These precedents create a more defined regulatory environment for Morgan Stanley’s latest applications.
Broader implications for institutional crypto adoption
Morgan Stanley’s persistent push into the crypto ETF market with staking-enabled products signifies a maturing institutional embrace of digital assets. The firm