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The updated filings reveal a 0.14% sponsor fee for both funds, which would make them the lowest-cost Ethereum and Solana ETFs in the US if approved. The documents also confirm plans to stake a portion of the funds’ crypto holdings, with Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada serving as staking providers.
Morgan Stanley Updates ETF Filings
Morgan Stanley is closer to launching spot Ethereum and Solana exchange-traded funds (ETFs) in the United States after filing amended registration documents with the US Securities and Exchange Commission (SEC). The latest amendments were submitted on Thursday, and were the second updates to the firm's Ethereum and Solana ETF applications since they were initially filed in January. This could be a sign that discussions between Morgan Stanley and the SEC are progressing.
One of the most interesting details revealed in the updated filings is the fee structure. Morgan Stanley plans to charge a sponsor fee of just 0.14% for both its Ethereum and Solana ETFs.
If approved, this would make the funds the cheapest spot Ethereum and Solana ETFs currently available in the US market. The proposed fee undercuts existing competitors, including Grayscale’s Mini Ethereum Trust, which currently offers the lowest Ethereum ETF fee at 0.15%, and Franklin Templeton’s SOEZ, which charges 0.19% for its Solana ETF.
The filings also provide more insight into how the funds will operate. Morgan Stanley intends to incorporate staking into both ETF products, which allows a portion of the Ethereum and Solana held by the funds to generate yield. Staking has become an attractive feature for crypto investment products because it allows investors to earn rewards while maintaining exposure to the underlying digital assets.
According to the filings, Figment Inc., Galaxy Blockchain Infrastructure LLC, and Coinbase Canada Inc. have been selected as staking service providers for the ETFs. These providers, along with custodians, will receive a 5% share of the staking rewards generated by the funds.
The proposed ETFs are expected to trade under the ticker symbols MSSE for the Ethereum fund and MSOL for the Solana fund. While the products have not yet received regulatory approval, the inclusion of detailed operational information and fee structures is often seen as an indication that the SEC review process is advancing.
Morgan Stanley’s latest ETF push follows the successful launch of its spot Bitcoin ETF, the Morgan Stanley Bitcoin Trust (MSBT), earlier this year. That fund also entered the market with a highly competitive 0.14% sponsor fee.
cointelegraph.com