Morgan Stanley has filed updated S-1 registrations with the SEC for spot Ether and Solana exchange-traded funds, naming Coinbase as the primary custodian and staking provider. The filings, submitted for the Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust, also list BNY Mellon as a joint custodian. The proposed ETFs carry an annual sponsor fee of 0.14%, undercutting many existing crypto fund expense ratios.
Custody and Staking Details
Coinbase will handle custody of the underlying assets and facilitate staking for the Ether fund, allowing the trust to earn staking rewards. BNY Mellon will serve as a joint custodian, adding an extra layer of institutional-grade safekeeping. The dual-custodian structure mirrors recent trends in the crypto ETF space, where issuers seek to mitigate counterparty risk through diversified custody arrangements.
Regulatory Outlook
The SEC has not yet approved any spot Solana ETFs, and the agency's stance on staking within ETF structures remains uncertain. Morgan Stanley's filings come amid a broader push by traditional finance giants into digital assets, with the bank aiming to offer low-cost, regulated exposure to Ethereum and Solana. The 0.14% fee is significantly lower than the 0.19% charged by BlackRock's iShares Ethereum Trust and the 0.25% fee on the Grayscale Ethereum Trust, potentially putting pressure on competitors. Market participants are watching for SEC signals on whether staking yields can be included in ETF returns without violating securities laws.