CumberlandThe asset manager is offering low-cost ETH and SOL exchange-traded products after its bitcoin fund topped $381 million in assets.
Morgan Stanley debuts ether, solana exchange-traded products after bitcoin fund success
The asset manager is offering low-cost ETH and SOL exchange-traded products after its bitcoin fund topped $381 million in assets.
Morgan Stanley added exchange-traded products tracking ether and solana, expanding its digital asset lineup beyond bitcoin. The new funds use CoinDesk benchmark indexes, charge a market-leading 0.14% fee and pass staking rewards to investors. The firm's 16,000 financial advisors and E*TRADE platform could give the products a significant distribution advantage.
Morgan Stanley is offering exchange-traded products tied to ether (ETH) and solana (SOL) just months after introducing its spot bitcoin BTC$63,426.13 fund.
The firm announced Tuesday that the Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL) will begin trading on NYSE Arca. The funds track the CoinDesk Ether Benchmark 4PM NY Settlement Rate and CoinDesk Solana Benchmark 4PM NY Settlement Rate, giving investors exposure to the two cryptocurrencies without requiring them to hold the tokens directly.
The funds arrive as large asset managers continue to broaden their crypto offerings in response to growing investor demand. Since the debut of spot bitcoin ETFs in the U.S. in January 2024, firms have steadily expanded into other digital assets, with ether products now well established and solana emerging as the next area of competition. There are already eight SOL exchange-traded funds listed by SoSoValue, with total net assets of $889.3 million.
"Digital assets are becoming an increasingly important component of diversified investment portfolios," Amy Oldenburg, head of digital asset strategy at Morgan Stanley, said in a press release. "As client interest in digital assets continues to grow, we're focused on providing a range of digital asset solutions that allow investors to diversify their portfolios across traditional and decentralized asset classes while also adhering to Morgan Stanley's standards for governance, infrastructure and risk management."
Both products charge a 0.14% expense ratio — the lowest on the market — and plan to stake a portion of their ether or SOL holdings, with any staking rewards passed through to investors rather than kept by Morgan Stanley.
The products build on the Morgan Stanley Bitcoin Trust (MSBT), which debuted earlier this year and had gathered more than $381 million in assets under management through July 16. The bitcoin fund tracks the CoinDesk Bitcoin Benchmark Rate.
BlackRock, which owns the largest spot bitcoin ETF on the market, recently brought its first crypto income ETF to the market, as clients are increasingly looking for steady income from their long-term bitcoin investments.
Morgan Stanley also enters the market with a built-in distribution advantage. Its wealth management business includes roughly 16,000 financial advisors overseeing more than $9 trillion in client assets, while its ownership of E*TRADE gives the firm a direct line to millions of self-directed investors.
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Crypto Flows, Share and the Selective Rotation
Crypto Flows, Share and the Selective Rotation
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Why it matters:
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
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