Morgan Stanley Debuts Ethereum and Solana ETPs, Undercutting Rivals on Fees

• Morgan Stanley Investment Management has introduced two new exchange-traded products tracking Ethereum and Solana.
• Each ETP carries a 0.14% expense ratio, significantly lower than competing offerings.
• The firm’s ETP assets under management now exceed $14 billion.

Morgan Stanley Investment Management (MSIM), a prominent provider of private equity and private credit financing, announced Tuesday the launch of two exchange-traded products (ETPs) tied to Ethereum (ETH) and Solana (SOL). The move expands the institution’s growing lineup of exchange-traded funds (ETFs) and ETPs, which collectively surpass $14 billion in assets under management (AUM).

Key Features of Morgan Stanley’s New Ethereum and Solana ETPs

Investors can trade the Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL) on NYSE Arca, the leading global marketplace for such instruments. Both products hold physical spot tokens—Ether and Solana, respectively—in partnership with institutional crypto custodians.

MSSE and MSOL track the performance of their underlying assets, pegging their values to the CoinDesk Ether and Solana Benchmarks at 4 PM settlement rates.

$14 Billion in AUM from ETPs

The new crypto ETPs join Morgan Stanley’s expanding suite of ETFs and ETPs, which now comprises 22 products and over $14 billion in AUM. The firm entered the U.S. crypto ETF arena with the Morgan Stanley Bitcoin Trust (MSBT) in April, a spot Bitcoin ETF that has already attracted $431 million in net inflows.

Each ETP carries an expense ratio of 0.14%, undercutting competitors such as BlackRock, Fidelity Investments, Franklin Templeton, and Grayscale Investments. To enhance returns, Morgan Stanley intends to stake a portion of the underlying tokens in MSSE and MSOL to generate staking rewards, though the firm clarified it will not retain any share of those rewards.

“Since introducing our first ETFs in 2023, we’ve built a diversified suite of ETFs and ETPs that now exceed $14 billion in assets under management,” said Ally Wallace, Global Head of ETFs for MSIM. “The addition of MSSE and MSOL reflects the natural evolution of our product suite, which seeks to provide simplified access to digital assets through the ETP wrapper.”

As of June 30, Morgan Stanley oversees more than $2 trillion in total AUM. The launch of MSSE and MSOL coincides with significant network upgrades for Ethereum and Solana, as both blockchains continue to scale infrastructure for stablecoin payments, real-world asset (RWA) tokenization, and institutional adoption.

Source link