Morgan Stanley is expanding its cryptocurrency lineup, adding exchange-traded products (ETPs) tracking Ether and Solana that also offer staking rewards. The move comes after the bank launched a Bitcoin fund earlier this year, signaling a broader push into digital assets for its wealth management clients.
Ether and Solana ETPs with Staking
The new ETPs track the spot price of Ether and Solana. What sets them apart is the staking component — investors earn additional yield from the proof-of-stake networks. That yield comes from the protocol itself, not from lending or other credit risk. For clients, it means exposure to the token's price movement plus a variable staking return.
Morgan Stanley structured the products as exchange-traded products, meaning they trade on traditional exchanges like stocks. That's a familiar wrapper for wealth management clients who may be wary of holding crypto directly or dealing with self-custody.
Building on the Bitcoin Fund
Earlier this year, Morgan Stanley launched a Bitcoin fund, becoming one of the first major U.S. banks to offer direct crypto exposure to its wealthy clients. That fund was a private placement, not an ETP. The new Ether and Solana ETPs are a different vehicle — publicly traded and more liquid. The bank is clearly testing different formats to see what resonates with its client base.
The timing isn't accidental. Institutional interest in crypto has been growing, and staking has become a key selling point for proof-of-stake assets. By offering staking within an ETP, Morgan Stanley gives clients a way to earn yield without managing validators or dealing with lock-up periods on their own.
Why Staking Matters
Staking rewards are not guaranteed — they depend on network participation rates and validator performance. But for Ether and Solana, staking yields have historically ranged between 3% and 8% annually. That's a meaningful addition to a portfolio, especially in a low-yield environment.
There are risks. Staking involves slashing conditions if the validator misbehaves, though the ETP structure likely delegates that risk to the fund's operator. Still, it's a new layer of complexity for traditional finance products. Regulators have been cautious about staking, with the SEC previously taking enforcement action against Kraken's staking program. Morgan Stanley's legal team has clearly vetted this structure.
The new ETPs are available now to eligible clients. Morgan Stanley did not disclose the total assets under management for the products. Other large wealth managers are expected to watch this rollout closely — if it gains traction, staking ETPs could become a standard offering on Wall Street.
