Morgan Stanley cuts ETH, Solana ETF fees to 0.14%
Morgan Stanley has moved closer to launching spot Ether and Solana ETFs, amending its U.S. Securities and Exchange Commission (SEC) filings to disclose management fees of 0.14% per year for each product. [2][5][6][14] The revised amendments, filed on June 18, 2026, cover the proposed Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL), adding staking provisions and flagging a fee level that would undercut most existing crypto ETFs in both categories. [2][5][6][14] For investors and asset managers, the move signals a pricing war within the emerging spot crypto ETF complex, one increasingly mirroring the fee compression seen in traditional equity ETFs over the past decade. [2][3][11]
Key Metrics / At a Glance
- Morgan Stanley proposed an annual sponsor fee of 0.14% for both the Ether ETF (MSSE) and Solana ETF (MSOL), calculated on daily net asset value and paid monthly. [2][5][6][14]
- The 0.14% figure would sit among the lowest publicly disclosed fees in U.S. spot Ether and Solana ETF sectors, coming below Grayscale’s Mini Ethereum Trust and Franklin Templeton’s SOEZ Solana ETF, which currently charge higher sponsor rates. [3][7][14]
- Each fund plans to stake a portion of its holdings via providers Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada, with 95% of staking rewards passed back to investors while a 5% fee goes to those providers. [2][5][7][14]
- The proposed structures remain under SEC review with no firm launch date; approval timelines continue to depend on ongoing regulatory scrutiny of the broader crypto ETF landscape. [6][7][14]
- The move brings Morgan Stanley into direct competition with a growing roster of U.S. crypto ETF sponsors, including the firm’s own planned 0.14% spot Bitcoin Trust (MSBT), which would also rank among the lowest-fee products in that category. [2][11][14]
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Fee focus in the ETH and Solana ETF race
The 0.14% fee level disclosed in the amended S‑1 registration statements positions Morgan Stanley as a price leader in the nascent spot Ether and Solana ETF arena. [2][3][6][14] ETF analyst Eric Balchunas, cited by several news outlets, has described the proposed fees as “the cheapest in the U.S. and world,” underscoring how large banks are now treating Ether and Solana as mainstream asset classes warranting sharply compressed pricing. [3][6] Morgan Stanley’s management fee includes most standard operating costs, with the sponsor subsidizing various expenses from the 0.14% unitary charge. [6][14]
For context, Grayscale’s Mini Ethereum Trust currently charges higher sponsor fees than 0.14%, while Franklin Templeton’s SOEZ Solana ETF is reported at 0.19% for its sponsor rate, placing Morgan Stanley’s proposed structure at or below the current lowest-fee benchmarks across both categories. [3][7][14] This dynamic puts pressure on existing sponsors to either lower fees or differentiate on service, branding, or scale, while also raising the bar for any future entrants. [2][3][11]
Staking mechanics and custodial plumbing
Beyond pricing, the updated filings clarify how staking is structured within each product. [2][5][7] Both the Morgan Stanley Ethereum Trust and Solana Trust will delegate a portion of their holdings to third‑party providers-Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada-creating a custody‑and‑staking stack that mirrors established institutional crypto infrastructure. [2][5][7] Under the terms disclosed, each fund will pay a 5% staking fee on the income earned by these providers, with the remaining 95% of staking rewards distributed to investors. [2][5][7]
This setup aligns the funds with broader institutional demand for yield‑enhanced crypto exposure, while also limiting the sponsor’s direct role in running validator infrastructure. [2][5][7] For investors, the 95% pass‑through rate is broadly in line with, though not materially better than, many existing staking‑enabled products, but the combination with the 0.14% fee tightens the overall cost‑to‑yield profile. [2][5][7] From a regulatory standpoint, the reliance on licensed or well‑known providers gives regulators more familiar entities to scrutinize, rather than asking the Commission to assess a novel in‑house staking operation. [2][5][7]
Competitive positioning and market structure
Morgan Stanley’s move comes as the broader spot crypto ETF ecosystem matures beyond Bitcoin‑only products. [2][6][11] The firm’s 0.14% fee for its planned spot Bitcoin Trust (MSBT) has already been flagged as the lowest among major U.S. Bitcoin ETF sponsors, with BlackRock’s iShares Bitcoin Trust (IBIT) currently charging around 0.25%. [11] Extending that same fee level to Ether and Solana suggests a deliberate strategy to brand Morgan Stanley as a low‑cost, full‑stack provider across the leading crypto assets, rather than a premium‑priced boutique entrant. [2][3][11]
If the funds receive SEC approval, the added supply of cheap, liquid Ether and Solana‑linked structures will likely reshape intra‑category flows. [2][3][6] Lower‑fee products historically attract scale quickly in the ETF world, particularly when bundled into large advisory platforms; Morgan Stanley’s own distribution network could channel client flows toward its internally sponsored funds, intensifying competition for approval‑lagging or higher‑priced rivals. [2][3][11] Over the medium term, persistent fee compression could reduce absolute revenue margins for some sponsors but increase total assets under management, replicating the “blood‑for‑scale” playbook seen in traditional index ETFs. [2][3][11]
Risk, uncertainty, and regulatory overhang
Despite the aggressive pricing, several key risks and uncertainties remain. [6][7][14] The amended S‑1 filings are still under SEC review, and neither MSSE nor MSOL has a confirmed launch date. [6][7][14] The SEC has not yet announced whether or when it will approve additional spot Ether or Solana ETFs, let alone under what operating conditions, meaning the structure and fee levels could be modified further during any future rounds of amendments. [6][7]
From a data standpoint, the 0.14% fee is well documented across multiple pieces of reporting, but projection of inflows, fee‑driven market share, and long‑term impact relies on interpretation of current flows and historical ETF behavior. [2][3][11] Analysts note that while low fees help attract capital, approval risk, trading liquidity, and brand recognition remain at least as important as pure cost in the early stages of any crypto ETF launch. [2][3][11]
Interpretation based on available data suggests that Morgan Stanley’s 0.14% fee for its proposed Ether and Solana ETFs is a clear signal that large Wall Street firms are prepared to treat these assets as core, rather than novelty, building hone‑cost, institutionally palatable structures. [2][3][6] Whether that pricing alone translates into dominant market share will depend on the timing of SEC decisions, rival fee moves, and the broader appetite for staking‑enabled exposure across the asset‑management community. [2][3][6][11]
Sources:
- https://www.bitget.com/news/detail/12560605471487
- https://www.morganstanley.com/disclosures
- https://globegain.com/news/morgan-stanley-amends-ethereum-solana-etfs-to-reveal-record-cheap-fees
- https://solanacompass.com/news/morgan-stanley-amends-solana-and-ethereum-etf-filings-to-add-staking-and-disclose-014-fee
- https://www.mexc.com/news/1163481
- https://www.theblock.co/post/405362/morgan-stanley-eth-sol-etf-amendments
- https://www.mexc.com/news/1157438
- https://bitcoinmagazine.com/featured/morgan-stanley-set-to-undercut-bitcoin
