Morgan Stanley filed amended S-1 statements with the SEC on June 19 for both an Ether and a Solana exchange-traded fund, setting management fees at 0.14% for each product. The rate undercuts every existing crypto ETF in the United States. Fee competition in the crypto ETF market has intensified since BlackRock and Fidelity launched spot Bitcoin products in January 2024, forcing late entrants to compete aggressively on cost to attract inflows.
Morgan Stanley Sets 0.14% Fees for Ether and Solana ETFs
The current lowest-fee spot Ether ETF in the U.S. is the Grayscale Ethereum Staking Mini ETF, which charges 0.15% annually. For spot Solana ETFs, Franklin Templeton's SOEZ holds the cheapest position at 0.19%, according to Farside Investors. Morgan Stanley's proposed 0.14% fee undercuts both by one basis point against Grayscale's Ether product and five basis points against Franklin Templeton's Solana fund.
The amended filings mark the second update since Morgan Stanley first submitted its ETF applications in January 2026. If approved, the Morgan Stanley Ethereum Trust will trade under the ticker MSSE and become the 11th spot Ether ETF available in the U.S. market. The Morgan Stanley Solana Trust, trading as MSOL, would be the seventh spot Solana fund to launch domestically.
Bloomberg ETF analyst Eric Balchunas posted on X that the 0.14% fee tier would make Morgan Stanley's crypto funds the cheapest ETFs not only in the U.S. but in the world. Late entrants like Morgan Stanley cannot win on brand recognition alone among ETF investors and must compete aggressively on cost to attract inflows.
Figment, Galaxy, and Coinbase Canada Provide Staking Services
The amended filings disclose that Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada will provide staking services for both products. Each fund carries a 5% fee on any staking rewards earned, a secondary revenue stream that partially offsets the low management fee and incentivizes the issuer to maximize staking yield for holders.
Morgan Stanley Bitcoin ETF Precedent Shows Pricing Strategy
Morgan Stanley's Bitcoin ETF, which launched in April 2026 at the same 0.14% fee, attracted $30.6 million on its first trading day. The fund has since gathered $331 million in total inflows, surpassing Bitcoin ETFs from Invesco, Franklin Templeton, and CoinShares that all launched over a year earlier.
The pattern reveals the firm's playbook: use below-market pricing to generate early inflows, then retain assets through the Morgan Stanley wealth management distribution channel. Smaller issuers cannot match 0.14% fees without risking unprofitable products, which gives the largest banks a structural advantage in the ETF price war.
A second S-1 amendment typically signals the SEC is in the final review stage before issuing an approval or denial order. No formal approval date has been published.
FAQ
How does Morgan Stanley's 0.14% fee compare to existing crypto ETFs?
Morgan Stanley's 0.14% fee undercuts the current lowest-fee spot Ether ETF (Grayscale Ethereum Staking Mini ETF at 0.15%) by one basis point and the cheapest spot Solana ETF (Franklin Templeton's SOEZ at 0.19%) by five basis points. Bloomberg ETF analyst Eric Balchunas stated the 0.14% rate would make Morgan Stanley's crypto funds the cheapest ETFs globally.
What staking services are included in Morgan Stanley's Ether and Solana ETFs?
Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada will provide staking services for both products. Each fund charges a 5% fee on any staking rewards earned, creating a secondary revenue stream that partially offsets the low 0.14% management fee.
What does a second S-1 amendment signal for SEC approval?
A second S-1 amendment typically indicates the SEC is in the final review stage before issuing an approval or denial order. Morgan Stanley first submitted its ETF applications in January 2026 and filed the second amended S-1 statements on June 19, following the pattern seen before prior crypto ETF approvals. No formal approval date has been published.
