Morgan Stanley Launches Ethereum, Solana ETPs: New Era for Crypto Investments

Morgan Stanley Investment Management has expanded its digital asset offerings by launching new Ethereum (ETH) and Solana (SOL) based exchange-traded products (ETPs). These products, named Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL), will trade on NYSE Arca. This move follows the firm's highly successful Bitcoin fund, signaling increasing institutional interest in cryptocurrency markets and strengthening the presence of mainstream financial institutions in this evolving sector.

The new ETPs build on the success of the Morgan Stanley Bitcoin Trust (MSBT), launched earlier this year, which managed over $381 million in assets as of July 16, 2026. MSSE and MSOL feature an annual expense ratio of 0.14%, positioning them among the lowest-cost products in their respective categories upon launch. These products will track CoinDesk benchmark rates and utilize a portion of their underlying assets for "staking" to earn rewards. Morgan Stanley has stated it will not retain any part of the staking rewards, passing approximately 95% directly to shareholders. Institutional staking provider Figment has been selected to manage the staking operations. Ally Wallace, Global Head of ETFs at Morgan Stanley Investment Management, noted that these additions represent a natural evolution of their product suite, aiming to provide simplified access to digital assets.

MSSE plans to stake between 50% and 80% of its Ethereum holdings, while MSOL may stake up to 100% of its Solana holdings. These proportions may vary based on market conditions and network reward rates, with MSOL expected to stake a higher percentage due to Solana's higher network reward rate. Bank of New York Mellon (BNY Mellon) and Coinbase Custody Trust Company serve as custodians for these trusts, ensuring institutional-grade reliability. This initiative by Morgan Stanley comes just two weeks after E*TRADE from Morgan Stanley completed its rollout of spot Bitcoin, Ethereum, and Solana trading services, underscoring the firm's rapid expansion strategy in digital asset access.

The introduction of these new ETPs is expected to intensify competition within the cryptocurrency sector and offer investors more cost-effective, reward-oriented products. Given Morgan Stanley's extensive client network, including 16,000 financial advisors managing over $9 trillion in client assets across the firm's network, these products could channel significant capital into the crypto markets. However, these launches occur during a challenging period for crypto funds. Global crypto ETP assets have retracted from approximately $184 billion at the end of 2025 to $136 billion by May 2026. U.S. Bitcoin exchange-traded fund (ETF) holdings also decreased from $104 billion to $80 billion during a mid-year redemption streak. This context suggests Morgan Stanley is making a long-term bet on broader adoption.

This expansion by a venerable financial institution like Morgan Stanley into the digital asset space signifies the deepening integration of cryptocurrencies with the mainstream financial system. The entry of traditional banking and investment giants into this arena contributes to the industry's maturation and encourages regulatory bodies to establish clearer frameworks. There is a growing consensus that digital assets are becoming an increasingly important component of diversified investment portfolios. Amy Oldenburg, Head of Digital Asset Strategy at Morgan Stanley, stated that as client interest in digital assets grows, the firm is focused on providing solutions that allow investors to diversify their portfolios across both traditional and decentralized asset classes. Such products offer investors exposure to digital assets without the technical complexities associated with direct cryptocurrency ownership.

Market analysts anticipate that Morgan Stanley's low-cost, staking-enabled ETPs will ignite a new wave of competition in the crypto fund market. Bloomberg Intelligence ETF analyst Eric Balchunas noted that, similar to their Bitcoin launch, Morgan Stanley's Ethereum and Solana ETPs are poised to have a significant impact due to the firm's sheer size and reach. With its network of 16,000 financial advisors and direct-to-consumer channels like E*TRADE, these products are expected to boost the adoption of crypto investment products among financial advisors and retail investors. Looking ahead, other major financial institutions are likely to follow suit, introducing staking-enabled or lower-cost crypto ETPs, thereby fostering continuous innovation and competition in the digital asset market.