Morgan Stanley has submitted final registration statements with the SEC for its MSOL (Solana) and MSSE (Ethereum) spot ETFs, featuring the lowest sponsor fee in the category at 0.14% and passing 95% of staking rewards to shareholders. The filings appoint Coinbase Prime and BNY Mellon as custodians.

Fee War and Staking Integration

The 0.14% fee undercuts all existing Solana ETF products and sets a new industry benchmark. Staking integration is the key differentiator: Solana's native yield is materially higher than Ethereum's 2.78% base rate, converting these ETFs from pure price exposure into income assets. In a yield environment with the US 10-year at 4.695%, a competitive net yield from staking makes these products attractive to income-focused institutional investors.

Morgan Stanley began the process in January 2026 with initial registrations, made amendments in June introducing the low fee and reward pass-through, and solidified operational details in July. This marks the first time a major Wall Street bank has integrated on-chain staking rewards into an ETF structure.

Institutional Custody and Compliance

Coinbase Prime and BNY Mellon handle custody and staking operations, with BNY Mellon bringing traditional asset servicing expertise. The filing also names Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada for staking services. The use of multiple custodians and established service providers signals attention to institutional compliance standards.

What This Means

Approval of these ETFs could draw significant new capital into Solana and Ethereum from wealth management channels. The combination of low fees and staking yield creates a compelling product for advisors managing client portfolios. For Solana, staked ETF holdings remove supply from tradeable float twice—into custody and into consensus—potentially creating structural demand. However, staking introduces operational risks: staked assets must meet redemption requests, and none of these structures have been tested through a genuine stress event. The SEC's response remains the key catalyst.