Morgan Stanley filed an amended registration assertion for the proposed Ethereum and Solana ETF trusts on June 18, setting an annual delegated sponsor charge of 0.14% for each merchandise.
Eric Balchunas, senior ETF analyst at Bloomberg, stated the proposed charges are the bottom amongst ETH and SOL merchandise worldwide.
The ETH belief will commerce on the NYSE Arca underneath the ticker MSSE and can monitor Ether and staking rewards from a portion of its holdings. SOL Belief (MSOL) plans to come clean with 100% of Solana.
BlackRock’s iShares Ethereum Belief ETF (ETHA) has a sponsorship charge of 0.25%, Grayscale’s Mini Ether (ETH) product begins at 0.15%, Bitwise’s Solana Staking ETF (BSOL) begins at 0.20%, and Franklin Templeton’s Solana ETF (SOEZ) has a web expense ratio of 0.19%.
This submitting is preliminary and the SEC should declare each registration statements efficient earlier than the inventory could be traded. Neither utility met that threshold.
Charges for the place
Morgan Stanley’s 14 foundation factors in crypto ETFs exhibits the agency anticipates the place the institutional allocation debate will go.
Bitcoin ETFs solved the entry drawback for institutional traders, and BlackRock’s IBIT property underneath administration exceeded $70 billion inside 18 months of launch.
The following query for asset managers and advisors is whether or not ETH and SOL, packaged cheaply and securely sufficient, can occupy the second line of the digital asset sleeve alongside Bitcoin.
Morgan Stanley’s 0.14% charge positions these merchandise as portfolio constructing blocks earlier than the allocation query has a broadly accepted reply.
The ETH Belief intends to stake between 50% and 80% of its holdings underneath regular market circumstances, with the staking service supplier and custodian receiving a complete of 5% of the anticipated rewards and the Belief retaining the rest.
SOL Belief additional expands on that mannequin by permitting as much as 100% of your holdings to be staked underneath the identical 95% belief holding construction, with delegated sponsors explicitly receiving no portion of the staking rewards.
Utilizing Bitwise’s disclosed complete staking reward price of 6.28% for a similar interval as a market benchmark, a full staking SOL product that retains 95% of the rewards would generate roughly 5.97% earlier than paying the 14 bps charge.
For ETH, if the hypothetical complete staking yield is 3% when staking 50% to 80%, the staking contribution that might be deferred might be roughly 1.29% to 2.14% excluding charges.
Advisors evaluating these merchandise are evaluating the economics of staking web of charges (complete yield, staking share, 95% retention in belief, and so on.), which collectively decide the efficient price of publicity.
| product | headline charge | staking share | Retaining belief rewards | Instance of retained earnings earlier than charges | Illustration of on-line after-sale charges |
|---|---|---|---|---|---|
| Morgan Stanley ETH Belief | 0.14% | 50%-80% of ETH | 95% | 1.43%～2.28% | 1.29%～2.14% |
| Morgan Stanley SOL Belief | 0.14% | As much as 100% of SOL | 95% | 5.97% | 5.83% |
What Circulation Information helps
Institutional rotation to ETH and SOL will happen intermittently all through 2026, with momentary demand and no everlasting system in place.
Within the CoinShares week reported on Might 18, Bitcoin merchandise absorbed $982 million in outflows, whereas SOL withdrew $55.1 million in inflows and ETH recorded $249 million in outflows.
In keeping with US spot ETF knowledge round Might twenty fifth, the BTC ETF misplaced roughly 16,595 BTC in seven days, whereas the SOL ETF added 192,835 SOL (roughly $16.58 million) and the ETH ETF misplaced 105,862 ETH.
By means of the reported week of June 1st, BTC recorded $1.44 billion in outflows and ETH recorded $257 million in outflows, whereas constructive funds totaled $20.3 million for XRP, $10.8 million for Hyperliquid, and $7.6 million for NEAR.
On June seventeenth, the US Spot ETH ETF recorded inflows of 9,361 ETH (roughly $16.4 million) in someday, however 7-day ETH inflows have been nonetheless destructive on the finish of the week.
The sample for these weeks has been that whereas SOL has picked up momentary demand, ETH has lagged the tempo of Bitcoin’s personal outflows, and alternative-specific bidding has landed on XRP and HyperLiquid, with the ETH/SOL pair failing to draw sustained bidding as a standalone.
Morgan Stanley assumes rotation signifies that the info is momentary and incomplete. The financial institution operates in 42 nations and Morgan Stanley Funding Administration stories roughly $1.8 trillion in property underneath administration or supervision as of September 30, 2025.
This distribution scope signifies that the 14 bps charge can be a bid for shelf area for advisors. MSSE and MSOL are already priced to beat the comparability when Morgan Stanley department asset managers determine so as to add crypto publicity apart from Bitcoin.
Two timelines for a similar wager
Within the bullish case, we would want over 4 weeks of mixed ETH and SOL inflows whereas Bitcoin flows stage off, with weekly SOL inflows transferring from tens of hundreds of thousands to lots of of hundreds of thousands.
If this rotation occurs, 14 bps will change into a structural weapon. Rivals working between 0.19% and 0.25% will face the selection of reducing their charges or ceding market share to manufacturers with Morgan Stanley’s attain.
With a full-stake SOL product that retains 95% of its rewards at 14 bps, it is arduous to justify the economics with numbers alone in comparison with its 20 bps non-staking opponents.
The bearish case is that the macro backdrop exposes monetary establishments to Bitcoin-only or cash-equivalent publicity for longer than anticipated within the product submitting schedule.
The Federal Reserve has saved rates of interest unchanged at 3.50% to three.75% till mid-2026, with almost half of policymakers anticipating a price hike this 12 months, and the outlook for inflation has been revised upward.
In that setting, the allocation case for ETH and SOL as portfolio elements will face harder price of capital arguments than in 2024.
Low charges and staking yields require an allocation case that advisors can justify to purchasers earlier than capital inflows materialize.
The SEC’s effectiveness schedule provides additional procedural uncertainty. The dealing with of staking, storage preparations, and tax therapy might all require additional revision earlier than buying and selling in any product.
The prize Morgan Stanley is vying for is shelf area for advisors within the allocation cycle related to Bitcoin normalization.
By the point monetary establishments broadly settle for ETH and SOL as portfolio eligible, Morgan Stanley’s crypto ETF, with its low charges and staking pass-through, may have a structural first-mover benefit.
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