What's happening
Morgan Stanley filed second-amended S-1 registration statements with the Securities and Exchange Commission on June 18, 2026, for two proposed exchange-traded funds: the Morgan Stanley Ethereum ETF, to trade under the ticker MSSE, and the Morgan Stanley Solana ETF, to trade under the ticker MSOL. Both filings were originally submitted in January 2026, and the June amendments represent the second round of revisions submitted to the SEC as the regulatory review process continues.
The amended filings disclose a 0.14% annual sponsor fee for both funds, a figure that positions Morgan Stanley below existing competing products — specifically Grayscale's Mini Ethereum Trust, which charges 0.15%, and Franklin Templeton's SOEZ, which carries a 0.19% fee. The filings also detail a staking component: Morgan Stanley intends to stake a portion of the ETH and SOL holdings held by each fund. Three named staking providers — Figment Inc., Galaxy Blockchain Infrastructure LLC, and Coinbase Canada Inc. — will collectively receive 5% of staking rewards alongside custodians, while 95% of staking rewards will be retained within the respective funds. The sponsor itself receives no staking rewards beyond the stated 0.14% management fee.
Why it matters for markets
Morgan Stanley's fee structure of 0.14% for both the MSSE and MSOL funds is a notable competitive data point in the nascent crypto ETF market. By pricing below Grayscale's Mini Ethereum Trust at 0.15% and Franklin Templeton's SOEZ at 0.19%, Morgan Stanley is positioning both products at the lower end of the fee spectrum for institutional-grade crypto ETF wrappers. For large institutional allocators sensitive to basis-point differences in total cost of ownership, fee competition of this nature can be a meaningful factor in product selection, particularly as assets under management scale.
The inclusion of a staking mechanism adds a layer of yield-generating potential that distinguishes these proposals from purely passive price-exposure vehicles. With 95% of staking rewards flowing back into the funds rather than to the sponsor, the structure is designed to pass the majority of on-chain yield to fund shareholders. This design choice, combined with the named institutional-grade staking infrastructure providers — Figment Inc., Galaxy Blockchain Infrastructure LLC, and Coinbase Canada Inc. — reflects an effort to address SEC concerns around operational transparency and counterparty risk that have historically complicated crypto ETF approvals.
Morgan Stanley, with a market capitalization of $352 billion and annual revenue of $73.17 billion, carries the institutional credibility and distribution infrastructure to direct significant wealth management and institutional client flows into these products if approved. The firm's existing wealth management and brokerage operations serving high-net-worth individuals represent a direct distribution channel that smaller or more crypto-native ETF sponsors do not possess to the same degree.
Sectors and assets to watch
The primary ticker directly implicated by these filings is MS (Morgan Stanley), as the firm is the named sponsor of both proposed ETFs and would collect the 0.14% annual management fee on assets under management if the products receive SEC approval and attract investor capital. The outcome of the SEC review will directly affect whether Morgan Stanley can expand its asset management product suite into spot crypto ETF vehicles.
Beyond Morgan Stanley, the filings name Figment Inc., Galaxy Blockchain Infrastructure LLC (an affiliate of Galaxy Digital), and Coinbase Canada Inc. as staking service providers — entities that would receive a portion of the 5% staking reward allocation directed to providers and custodians. Competing ETF issuers in the Ethereum and Solana ETF space, including Grayscale and Franklin Templeton, are also relevant to monitor, as Morgan Stanley's 0.14% fee undercuts both Grayscale's Mini Ethereum Trust at 0.15% and Franklin Templeton's SOEZ at 0.19%, intensifying fee competition across the category.
What to watch next
The key forward-looking development is the SEC's response to the second-amended S-1 filings submitted on June 18, 2026, including whether the agency requests further amendments, issues comment letters, or moves toward a decision on approval or denial. Observers should also monitor whether Morgan Stanley's 0.14% fee structure prompts fee reductions from competing issuers such as Grayscale or Franklin Templeton, and whether the SEC's treatment of the staking provisions — specifically the three named providers and the 95/5 reward-split structure — sets a precedent for how staking yield is handled in future spot crypto ETF approvals.