What to know:
- Morgan Stanley filed amended SEC forms regarding its spot Ethereum and Solana ETFs, both of which carry a 0.14% sponsor fee.
- Ethereum ETF would allocate between 50%-80% to ETH staking, whereas Solana ETF can stake up to 100% of its holdings.
- Morgan Stanley manages over $357 million with its spot Bitcoin ETF, giving it the platform to expand its crypto ETFs.
Morgan Stanley has moved closer to launching its spot Ethereum and Solana exchange-traded funds after submitting amended S-1 registration statements with the U.S. Securities and Exchange Commission (SEC). The latest filings suggest the Wall Street firm is advancing preparations for new crypto investment products following its entry into the spot Bitcoin ETF market.
In the updated filing done on July 14, Morgan Stanley appears to be finalizing some details about the proposed ETFs, among which include the service providers’ agreement, custodial agreements, and stakeholder model. Bloomberg ETF analyst James Seyffart said the updates suggest the launches are likely approaching, highlighting increased institutional activity in crypto markets.
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Morgan Stanley Updates Ethereum ETF Filing With SEC
Morgan Stanley submitted its third amendment for its spot Ethereum ETF, which is planned to trade on NYSE Arca under the ticker symbol MSSE. The filing includes updates related to the delegated sponsor, Coinbase Prime services, and custody and trade finance agreements, indicating the product is moving through the regulatory process.
The proposed Ethereum ETF will include a 0.14% sponsor fee and a staking opportunity for investors. Morgan Stanley will stake from 50% to 80% of the Ethereum balance held through providers such as Figment, Galaxy Blockchain, and Coinbase Canada, while the staking providers and custodians will be getting 5% of all earned rewards.
Morgan Stanley Investment Management, acting as the delegated sponsor, declared it does not plan to keep the rest of the staking rewards. Such an approach might allow for generating extra yields for investors while still having access to the asset via an ETF traded on the exchange.
This news comes as a consequence of the increased interest in crypto ETFs after the approval and launch of spot Bitcoin ETFs in the United States. More and more asset managers decide to introduce products that track major cryptocurrencies as the regulations become clearer and interest expands beyond Bitcoin.
Wall Street Firm Expands Solana ETF Plans
Besides the Ethereum ETF, Morgan Stanley also amended its spot Solana ETF with ticker MSOL on NYSE Arca. This Solana ETF will have a 0.14% management fee and will offer the staking possibility for holders through Figment, Galaxy Blockchain, and Coinbase Canada.
According to the filings, the company plans to stake up to 100% of SOL holdings with distribution of rewards following the same rules as for the Ethereum ETF. All custodians, administrators, and service providers will follow the terms similar to those of the Morgan Stanley Bitcoin ETF.
Morgan Stanley’s spot Bitcoin ETF, MSBT, has already managed to attract much interest from investors, reaching $357 million total asset size.
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