Morgan Stanley Investment Management began trading two spot digital asset products on NYSE Arca on Tuesday, the Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL). Each charges 0.14%, the lowest fee in its category, and each will stake a portion of its holdings to earn network rewards.
The pricing undercuts Grayscale‘s Mini Ethereum Trust at 0.15% and Franklin Templeton‘s solana fund at 0.19%, according to SoSoValue data. MSSE tracks the CoinDesk Ether Benchmark 4PM NY Settlement Rate and MSOL tracks the equivalent solana rate. The launches bring MSIM’s digital asset lineup to three products spanning bitcoin, ether, and SOL, inside an ETF and ETP business that now runs more than $14 billion across 22 funds.
Bloomberg senior ETF analyst Eric Balchunas called Morgan Stanley’s offerings the biggest ether and solana launch since the original spot funds, pointing to the firm’s roughly 16,000 financial advisors. Balchunas put those advisors’ client assets at $7 trillion.
Under normal conditions MSSE intends to stake between 50% and 80% of its ether, while MSOL can stake up to 100% of its SOL, according to the funds’ prospectuses. MSIM says it will not retain any staking rewards for itself. Morgan Stanley named Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada as staking providers. Rewards are converted to cash and paid to shareholders monthly, or at least quarterly, rather than compounding inside the fund.
MSBT, the bank’s spot bitcoin fund manager, debutd in April with $34 million in first-day inflows at the same 0.14% fee. It most recently held nearly $390 million, which Balchunas described as a good sign given the fund launched into a bear market.
Related Listen: How Ethereum Institutional Intends to Grow Ethereum’s Market Share
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