Morgan Stanley has submitted fresh amendments to its applications for spot ether and solana exchange-traded funds, marking the third round of revisions since the initial filings in January. The updated paperwork names Coinbase as custodian and staking facilitator for both proposed funds.
Third round of revisions
The latest amendments come after two previous rounds of changes, though the specific adjustments in this filing were not detailed. The bank first filed for the ETFs in January, and has since been working through the regulatory process with the Securities and Exchange Commission. Each revision typically addresses SEC feedback on issues such as market surveillance, custody arrangements, and investor protections.
Coinbase's role
Coinbase is listed as the custodian for the ether and solana holdings, and will also handle staking for the ether fund. Staking involves locking up tokens to support network operations in exchange for rewards, a feature that some regulators have scrutinized. By naming Coinbase as the staking facilitator, Morgan Stanley is signaling that the fund would generate yield through staking, which could make it more attractive to investors but also raises questions about how the SEC will treat staking income under securities laws.
The filings are now under SEC review, with no set timeline for a decision. The agency has yet to approve any spot ether or solana ETF, though it has approved several bitcoin ETFs. The outcome of these applications could set a precedent for how the SEC handles crypto assets beyond bitcoin. Investors and industry watchers will be watching for any SEC comments or requests for further revisions.
