Morgan Stanley Updates Ethereum and Solana ETF Filings as Coinbase Takes Custody and Staking Role

Morgan Stanley has filed fresh amendments to its spot ether and solana exchange-traded fund (ETF) applications, designating Coinbase as custodian and staking facilitator. The updates represent the banking giant’s third round of revisions since its January debut filings.

The amended S-1 registration statements for the proposed Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust also name BNY Mellon as a joint custodian. The ether fund intends to stake 50% to 80% of its ETH under normal conditions, while the solana trust may stake up to 100% of its SOL, keeping a portion liquid for redemptions and expenses. Staking providers and custodians would share 5% of rewards, with 95% accruing to each trust.

Both funds carry a 0.14% annual sponsor fee, undercutting Grayscale’s 0.15% ether product and marking some of the lowest fees in the market. The ethereum product is expected to trade under the ticker MSSE, with the Solana fund listing on NYSE Arca as MSOL.

The aggressive pricing follows a strategy already tested by Morgan Stanley. Its Bitcoin Trust (MSBT) attracted $300.7 million in inflows after launching in April 2025 with the same low-fee approach. The firm now targets market share in ether and solana products as fee competition intensifies across issuers.

The rapid cadence of amendments—original filings in January, revisions on June 18, and the July 14 update—suggests active dialogue with the Securities and Exchange Commission (SEC). Successive S-1 updates typically indicate regulators are engaging with an application. Approval remains pending, and the SEC has not committed to a timeline. The next major milestone will be a final round of amendments setting launch mechanics.

Source: https://news.bitcoin.com/morgan-stanley-ether-solana-etf-coinbase-custody/