Morgan Stanley Overhauls Ethereum and Solana ETFs with Staking Incentives

Morgan Stanley has updated its proposed Ethereum and Solana exchange-traded funds (ETFs) to include a staking structure that would allow 95% of staking rewards to remain within the trusts.

The proposed structure would charge a 0.14% annual sponsor fee, while keeping 5% of staking rewards as compensation for service providers and custodians.

The amended S-1 registration statements filed by Morgan Stanley detail that the staking process would operate through third-party service providers and custodians, who would deposit ETH or SOL into Ethereum or Solana staking smart contracts.

Morgan Stanley disclosed network capacity data tied to Ethereum staking, stating that approximately 3.64 million ETH were waiting in the validator activation queue as of May 18, 2024.