Morgan Stanley Files Staking ETFs for Ethereum and Solana at 0.14% Fee

Filing Details

Morgan Stanley submitted amended SEC filings for two new spot ETFs: one tracking Ethereum with staking rewards and one tracking Solana with staking rewards, according to the filing disclosures. Both funds would charge 0.14% annually, a rate lower than every other staking or spot ETF currently available in the U.S. market for either asset.

Competitive Landscape

The 0.14% fee represents a significant undercutting of existing players. Grayscale's Ethereum Mini Trust carries a 0.15% fee, while iShares Bitcoin ETF charges 0.20% on its spot product. The lower fee structure puts pressure on incumbents to match or narrow their spreads, a dynamic that has repeatedly played out as new ETF entrants arrive.

Next Steps

Morgan Stanley's filings do not guarantee approval; the SEC must review the applications for compliance with exchange rules and investor protection standards. Grayscale and other existing ETF providers may respond with fee cuts of their own, a pattern seen after Fidelity and iShares entered the spot Bitcoin ETF market in January 2024.

Why It Matters

For Traders

If approved, these ETFs could draw inflows away from competing products, potentially affecting spot premiums and trading spreads on existing staking vehicles.

For Investors

Staking-inclusive ETFs at 0.14% make passive exposure to validator rewards more accessible and cost-efficient than prior alternatives, lowering the bar for institutional adoption.

For Builders

Protocol-level staking economics depend partly on retail participation; lower-cost ETF access could increase validator deposits and network security, though at the cost of fee compression for staking service providers.