Morgan Stanley expanded its crypto lineup this week, listing exchange-traded products for Ethereum and Solana on NYSE Arca. The new funds — MSSE for Ether and MSOL for Solana — bring the bank's crypto ETP suite to three, covering Bitcoin, Ethereum, and Solana. Both products charge a 0.14% expense ratio and pass staking rewards directly to investors, a structure that sets them apart from many existing crypto ETFs.
How the staking works
Morgan Stanley tapped Figment for validator services on both ETPs. That means the underlying tokens are staked to earn network rewards, and those rewards flow through to holders after the fund's expenses. The 0.14% fee is notably low for a staking-enabled product — most competitors charge between 0.5% and 1% for similar features. The bank didn't disclose the exact staking yield, but Solana's current staking rate hovers around 6-7% annually, while Ethereum's is roughly 3-4%.
SEC chair pushes Clarity Act as window narrows
Separately, SEC Chair Paul Atkins renewed his support for the Clarity Act this week, pledging technical assistance to Congress as lawmakers race to finalize the bill. The legislation aims to draw clear lines between SEC and CFTC jurisdiction over crypto assets — a long-standing source of confusion for issuers and exchanges. Atkins's public backing comes as Congress faces a limited legislative window before the August recess. If the Clarity Act doesn't pass in the next few weeks, it could stall until fall.
Bitcoin, Ether steady ahead of Fed
Bitcoin recovered after briefly slipping below a key support level earlier in the week, while Ethereum stabilized following a selloff that pushed prices lower. The moves come as traders eye the Federal Reserve's upcoming policy decision, which is expected to set the tone for risk assets in the near term. European banks are also expanding blockchain infrastructure for tokenized settlements, a trend that could boost institutional demand for crypto ETPs like Morgan Stanley's new offerings.
Morgan Stanley's ETPs are already trading on NYSE Arca, but the real test will be adoption. The bank's existing Bitcoin ETP has drawn steady inflows since launch, and the addition of staking rewards could make MSSE and MSOL more attractive to yield-seeking investors. On the regulatory front, the Clarity Act's fate before the August recess remains the biggest unresolved question — and one that could shape how many more products like these hit the market.
