Morgan Stanley launched spot Ethereum and Solana ETFs on July 28, each carrying a 0.14% expense ratio and staking that passes 95% of rewards through to shareholders. The launch follows the bank's Bitcoin Trust debut in April and extends crypto access to its network of more than 16,000 financial advisors.
On July 28, Morgan Stanley announced two new spot crypto ETFs for Ethereum and Solana, both carrying a 0.14% expense ratio. A spot ETF aims to track the performance of its underlying coin minus fees, giving brokerage-account investors a route into Ethereum and Solana without holding the coins directly.
The launch follows the Morgan Stanley Bitcoin Trust, which debuted in April as the firm's first crypto ETF at the same 0.14% fee — below the 0.20% to 0.25% most Bitcoin ETFs charge.
Staking rewards pass through to shareholders
Both new ETFs integrate staking, with 95% of the resulting rewards expected to pass through to shareholders; staking providers keep the remaining 5%, and Morgan Stanley retains none of it.
The bank's more than 16,000 financial advisors can now offer Ethereum and Solana ETFs to clients, extending crypto access across a wealth-management network the firm counts among the largest in the industry.
Retirement accounts drive the appeal
A spot ETF lets investors gain exposure inside an IRA or Roth IRA, something buying the coins directly on an exchange does not offer. Roth IRA withdrawals are tax-free once an investor is at least 59 1/2 and has held the account at least five years, a structure that works well for volatile assets.
Solana has risen about 165% over the past five years, as of July 29, illustrating the kind of long-term gain an ETF wrapper can capture inside a tax-advantaged account.
ETFs also spare investors from tracking crypto-specific tax rules, since gains show up on standard brokerage forms instead.
The timing still lands in a bear market, and a pair of ETF launches won't change that. ETF inflows may take time to pick up steam given the current rough patch. Still, Morgan Stanley's move adds another signal of crypto's legitimacy and two more high-quality investment options for the market.
Source: The Motley Fool
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