Morgan Stanley has launched exchange-traded products (ETPs) tracking ether and solana, marking the Wall Street giant's latest push into digital assets. The new funds carry a fee of 0.14%, which the firm describes as market-low, and include staking features that generate additional yield for investors. The move expands Morgan Stanley's crypto lineup beyond its existing bitcoin ETPs and intensifies competition among traditional finance firms vying for crypto capital.
The new products
The ETPs are designed to give institutional and retail clients exposure to ether and solana without the hassle of direct custody. Morgan Stanley already offered bitcoin ETPs, but this is its first foray into the second- and fifth-largest cryptocurrencies by market cap. The 0.14% fee undercuts most existing crypto ETPs, which typically charge between 0.5% and 1.5%.
Staking as a differentiator
A key feature is staking. Both ether and solana use proof-of-stake consensus, meaning holders can earn rewards by helping secure the network. By baking staking into the ETP structure, Morgan Stanley passes those rewards through to investors — something many competing products don't offer. That could make the funds especially attractive to yield-seeking buyers in a low-rate environment.
Competitive pressure
The launch puts pressure on existing crypto fund managers, who now face a well-capitalized rival with a lower fee and a built-in distribution network. Morgan Stanley's wealth management arm oversees trillions in assets, giving it a direct pipeline to high-net-worth clients. Incumbents will have to decide whether to cut fees, add staking, or both to keep their products competitive.
The timing isn't accidental. Institutional interest in crypto has been climbing this year, and ether and solana have drawn particular attention for their smart-contract ecosystems. Morgan Stanley is betting that a low-cost, staking-enabled wrapper will capture a chunk of that demand.
