Morgan Stanley Launches America’s Cheapest ETH and SOL ETFs With Staking Rewards

The funding banking large has begun buying and selling for the Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL) on NYSE Arca on July 28.

Both funds are priced at a 0.14% expense ratio, which undercuts each rival ETH and SOL product on the US market, as CryptoPotato covered the amended filings that locked within the 14 foundation level determine earlier this month.

Notably, Grayscale’s Mini Ethereum Trust held the earlier low mark amongst ETH funds at 0.15%. Franklin Templeton’s SOEZ was the most cost effective SOL fund at 0.19%. Bloomberg ETF analyst Eric Balchunas stated on the time that the pricing made the 2 funds “the most cost effective within the U.S. and world.”

Cheapest ETH and SOL ETFs, But With Tax Cover

Both trusts stake a share of their holdings and hand the rewards again to shareholders.

“MSIM is not going to retain any portion of the rewards earned by both ETP for itself,” the agency stated in its announcement. The registration docs put the staking targets at 50% to 80% of ETH holdings and as much as 100% of SOL, run via Figment, Galaxy and Coinbase Canada, with supplier service charges capped at 5%.

The Treasury and the IRS published the Revenue Procedure 2025-31 in November, a secure harbor that lets an exchange-traded product stake a single proof-of-stake asset and move rewards to buyers with out a separate tax cost.

The circumstances embrace a third-party custodian holding non-public keys, an unbiased staking supplier, and SEC approval of the disclosures.

MSSE tracks the CoinDesk Ether Benchmark 4 PM NY Settlement Rate. MSOL tracks the CoinDesk Solana Benchmark on the similar cutoff. MSIM acts as delegated sponsor for each, with Foreside Fund Services as advertising and marketing agent.

Building on the Bitcoin Fund

The launches comply with the Morgan Stanley Bitcoin Trust (MSBT), the primary crypto ETP from a US bank-affiliated asset supervisor, which opened earlier this 12 months with $34 million in first-day quantity.

MSBT held greater than $381 million in belongings beneath administration via July 16 and carries the identical 0.14% charge.

“Since introducing our first ETFs in 2023, we’ve constructed a diversified suite of ETFs and ETPs that now exceed $14 billion in belongings beneath administration,” stated Ally Wallace, Global Head of ETFs at MSIM. The suite runs to 22 merchandise, three of them digital asset ETPs.

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