TLDR
- Morgan Stanley submitted amended S-1 filings for its proposed spot Ethereum and Solana exchange-traded funds.
- The proposed 0.14% sponsor fee would rank below current competing crypto ETF fee levels.
- The Ethereum fund is expected to trade as MSSE, while Solana uses MSOL.
- Filings describe staking plans where 95% of generated rewards would remain inside each fund.
- Ethereum staking disclosures mention activation queue delays and potential validator slashing risks for staked assets.
Morgan Stanley submitted amended S-1 registration statements to the U.S. Securities and Exchange Commission for its proposed spot Ethereum and Solana exchange-traded funds, according to details cited from the updated filings. The revised documents show a 0.14% annual sponsor fee for both funds, placing the proposed products below competing fee levels referenced in current market data.
The amendments relate to the Morgan Stanley Ethereum Trust and the Morgan Stanley Solana Trust, which were previously filed with the SEC in January. Bloomberg ETF analyst James Seyffart said in a social media post that the amended filings had been submitted, while the documents also set out proposed tickers and staking arrangements.
New Fee Structure Places Morgan Stanley Below Rivals
The proposed 0.14% sponsor fee would be lower than the fee levels cited for existing or proposed products in the spot Ethereum and Solana ETF markets. Grayscale’s Mini Ethereum Trust has been referenced at 0.15%, while Franklin Templeton’s SOEZ has been cited at 0.19% among Solana ETF products.
Morgan Stanley’s Ethereum exchange-traded fund is expected to trade under the ticker MSSE, while the Solana exchange-traded fund is expected to trade under MSOL. The ticker disclosures give the applications a more defined market structure as the review process continues at the SEC.
The updated filings follow Morgan Stanley’s earlier entry into the spot Bitcoin ETF market through the Morgan Stanley Bitcoin Trust. That product reportedly launched in April with a 0.14% sponsor fee and had drawn $300.7 million in cumulative net inflows as of June 18.
Staking Plans Added for Ethereum and Solana Funds
The amended filings state that both funds may stake a portion of their underlying Ethereum and Solana holdings to generate additional on-chain rewards. The structure would allow fund investors to retain exposure to the spot price of ETH and SOL while the trusts hold assets directly.
According to the disclosed reward split, staking service providers and custodians would receive 5% of staking rewards as compensation. The remaining 95% of staking rewards would stay within the fund, increasing the assets retained by the trust after expenses related to staking operations.
The filings name Figment Inc., Galaxy Blockchain Infrastructure LLC, and Coinbase Canada, Inc. as staking service providers for the products. The structure reflects the use of third-party infrastructure to run validator functions while the funds maintain custody and operational controls through their chosen providers.
Ethereum Filing Details Queue and Slashing Risks
The Ethereum filing provides added operational detail on how the staking process would work for the proposed fund. The custodian would deposit ETH held by the fund into an Ethereum staking smart contract, while a third-party staking provider would operate validators on behalf of the trust.
The document also describes slashing risk, which refers to penalties that can be applied when validators fail to follow network rules or meet performance requirements. In such cases, a portion of staked assets may be reduced under Ethereum protocol conditions.
Morgan Stanley’s filing also cites Ethereum validator queue data as of May 18, 2026, showing about 3.64 million ETH waiting in the activation queue. Based on an estimated rate of up to 56 validators activated per epoch, the filing states that newly staked ETH may need about 63 days before earning staking rewards.
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