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

An Update With Major Implications

The Wall Street slope updated its S-1 registration statements for the projected spot ether and solana funds, with Coinbase providing custody and facilitating staking, moving alongside BNY Mellon (with the second having been designated arsenic a associated custodian for the Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust).

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The filings support staking astatine the halfway of the products’ design. The ethereum spot intends to stake 50% to 80% of its ether nether mean conditions, portion the solana spot whitethorn stake up to 100% of its SOL, keeping a information liquid for redemptions and expenses. Staking providers and custodians would stock 5% of rewards, with 95% accruing to each trust.

Earlier filing rounds named Figment Inc., Galaxy Blockchain Infrastructure LLC, and Coinbase Canada Inc. arsenic staking work providers. The ethereum merchandise is expected to commercialized nether the ticker MSSE, with the Solana money listing connected NYSE Arca arsenic MSOL.

Both funds transportation a 0.14% yearly sponsor interest and arsenic Bitcoin.com News reported successful June, Morgan Stanley set the 0.14% fee successful its 2nd amendment round, undercutting Grayscale’s 0.15% ether merchandise and marking the lowest fees successful the marketplace astatine the time.

A Fee War With a Proven Playbook

The assertive pricing follows a strategy the slope has already tested. Morgan Stanley’s Bitcoin Trust (MSBT) attracted $300.7 cardinal successful inflows aft launching successful April 2025 with the aforesaid low-fee approach, and the steadfast is present targeting marketplace share successful ether and solana products arsenic interest contention intensifies crossed issuers.

The accelerated cadence of amendments (be it the archetypal filings successful January, revisions connected June 18, and present the July 14 update) suggests progressive dialog with the Securities and Exchange Commission (SEC). Successive S-1 updates typically bespeak regulators are engaging with an exertion alternatively than letting it sit.

Approval remains pending, and the SEC has not committed to a timeline. The adjacent large milestone to ticker is simply a last circular of amendments mounting motorboat mechanics, wherever the marketplace volition larn whether Wall Street’s biggest wealthiness manager tin bring staking-enabled ether and solana funds to its 19,000 advisers (and whether the 0.14% interest survives interaction with competitors consenting to spell lower).