Morgan Stanley Targets Ethereum and Solana ETF Market Share Amid Intensifying Fee Competition
Morgan Stanley has amended its filings for proposed Ethereum and Solana exchange-traded funds (ETFs), signaling an aggressive push to capture market share as competition in the crypto ETF space intensifies. The firm set a proposed management fee of 0.14% for both ETFs, undercutting competitors such as Grayscale (0.15%) and Franklin Templeton (0.19%).
The narrow fee spread suggests the market is shifting from product novelty to asset gathering, where issuers compete primarily on price. Brian Rudick, chief strategy officer at Solana treasury company Upexi, noted that fee compression mirrors the pattern seen in spot Bitcoin ETFs, indicating these products are entering a commodity phase.
Bitwise’s Solana ETF, BSOL, launched on NYSE Arca in October 2025, already surpassed $1 billion in assets under management, demonstrating significant demand. Morgan Stanley’s proposed Solana trust, ticker MSOL, would track the CoinDesk Solana Benchmark and can stake up to 100% of its SOL holdings, with staking providers receiving 5% of rewards. The Ethereum trust, ticker MSSE, would track the CoinDesk Ether Benchmark and stake 50% to 80% of its ETH under normal conditions, with similar reward distribution terms.
Both ETFs would use BNY and Coinbase Custody as custodians. The filings remain preliminary, with no confirmed launch dates until the registration statements become effective with the SEC.
Morgan Stanley already has a spot Bitcoin ETF, MSBT, launched in April 2026 with the same 0.14% fee. It held about $364 million in net assets as of July 10, 2026, becoming the first proprietary spot crypto ETF from a major U.S. commercial bank. The bank’s strategy combines low fees, staking income, and bank-backed distribution to win market share.