Morgan Stanley Adds Staking to Ethereum and Solana ETFs

Morgan Stanley is expanding its crypto product line by adding staking to its Ethereum and Solana exchange-traded funds (ETFs). The firm has filed a third round of amendments with the U.S. Securities and Exchange Commission for the proposed ETFs, which will give investors spot exposure to ether and solana through ordinary brokerage accounts.

The Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust will track the CoinDesk Ether Benchmark 4PM NY Settlement Rate and the CoinDesk Solana benchmark respectively. The returns of these trusts will reflect changes in the underlying token, less expenses, plus any net staking rewards.

The key difference between these ETFs and conventional spot crypto funds is that they will generate staking rewards. The Ethereum trust intends to stake between 50% and 80% of its ETH under normal market conditions, while the Solana product may stake up to 100% of its SOL.