Morgan Stanley Files Ethereum and Solana ETFs at 0.14% Fee

Morgan Stanley's Filing Details

Morgan Stanley submitted applications for spot Ethereum and Solana ETFs carrying a 0.14% annual management fee, according to an SEC filing. The funds will pass through 95% of staking rewards to shareholders, a competitive feature aimed at attracting yield-focused investors in both protocols.

Competitive Landscape

The 0.14% fee represents a new floor in the nascent crypto ETF market, undercutting established players BlackRock and Franklin Templeton. Spot Bitcoin and Ethereum ETF approval in the U.S. in January 2024 sparked a race to lower fees; Morgan Stanley's filing suggests that competition has intensified to include staking-enabled products on emerging Layer 1 networks.

Next Steps

The SEC has not yet approved the filings. Morgan Stanley joins a growing list of traditional financial institutions seeking to offer direct exposure to cryptocurrencies through regulated fund vehicles, signaling increased institutional appetite for crypto asset classes beyond Bitcoin.

Why It Matters

For Traders

Lower ETF fees reduce friction for institutional entry into Ethereum and Solana, potentially increasing inflows and liquidity over the coming months.

For Investors

Fee compression in spot crypto ETFs benefits long-term holders; staking passthrough at 95% is economically meaningful for yield-seeking allocators.

For Builders

Ethereum and Solana validators should model increased institutional staking inflows if these ETFs are approved, affecting network security economics and fee dynamics.