- Morgan Stanley Investment Management launched two new ETPs tracking the performance of Ethereum and Solana.
- Each investment instrument comes with a 0.14% expense ratio, significantly undercutting competition.
- The institution now holds $14 billion in AUM for its ETPs.
Morgan Stanley Investment Management (MSIM), a leading provider of private equity capital and private credit financing to companies, announced the launch of two new exchange-traded products (ETPs) tracking Ethereum (ETH) and Solana (SOL) on Tuesday. They add to the institution’s growing exchange-traded fund (ETF) and ETP offerings that have already surpassed $14 billion in assets under management (AUM).
Key Features of Morgan Stanley’s New Ethereum and Solana ETPs
Investors can trade the Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL) ETPs on New York Stock Exchange (NYSE) Arca, the leading global market for such investment instruments. MSSE and MSOL work by holding physical spot tokens, namely Ether and Solana, in partnership with institutional crypto custodians.
MSSE and MSOL track the performance of their underlying crypto assets. They peg their values to the CoinDesk Ether and Solana Benchmarks at 4 PM Settlement Rates.
$14 Billion in AUM from ETPs
The crypto ETPs add to Morgan Stanley’s growing suite of ETFs and ETPs. Its stack now holds more than $14 billion in AUM across 22 products.
The institution notably entered the US crypto ETF race starting with the Morgan Stanley Bitcoin Trust (MSBT). Since its launch in April, the spot Bitcoin (BTC) ETF has already accumulated $431 million in total net inflows.
Each ETP has an expense ratio of 0.14%, undercutting the competition, including BlackRock, Fidelity Investments, Franklin Templeton, and Grayscale Investments. To amplify their earning potential, Morgan Stanley plans to stake a portion of the underlying tokens of MSSE and MSOL to earn staking rewards. However, it clarified that MSIM will not retain any portion of the rewards the ETP earns for itself.
“Since introducing our first ETFs in 2023, we’ve built a diversified suite of ETFs and ETPs that now exceed $14 billion in assets under management,” said Ally Wallace, Global Head of ETFs for MSIM. “The addition of MSSE and MSOL reflects the natural evolution of our product suite, which seeks to provide simplified access to digital assets through the ETP wrapper.”
As of June 30, Morgan Stanley maintains over $2 trillion in AUM. Its launch of MSSE and MSOL coincides with major updates in Ethereum and Solana, as the two competing chains continue to scale their network infrastructure for stablecoin payments, real-world asset (RWA) tokenization, and institutional adoption.
