Wall Street Giant Morgan Stanley Files Ethereum and Solana ETF Applications

Morgan Stanley is pushing deeper into the crypto market after filing amended S-1 registration documents for its proposed Ethereum and Solana exchange-traded funds with the U.S. Securities and Exchange Commission (SEC). The move marks another major step in Wall Street’s growing race to launch regulated crypto investment products beyond Bitcoin.

Morgan Stanley Files Updated Ethereum and Solana ETF Applications

The latest filings were submitted on May 20 and include two proposed products, the Morgan Stanley Ethereum Trust and the Morgan Stanley Solana Trust.

According to the documents, the proposed ticker symbol for the Ethereum ETF will be “MSSE,” while the Solana ETF is expected to trade under the ticker “MSOL.”

The filings outline how both trusts will operate, including the process for creating and redeeming shares through authorized participants. Morgan Stanley also included staking-related details in both applications, showing that the firm plans to generate additional rewards from Ethereum and Solana holdings inside the trusts.

The updated filings came only one day after Morgan Stanley submitted paperwork tied to additional crypto investment products, signaling an aggressive expansion into digital asset ETFs.

Ethereum ETF Will Include Staking Rewards

One of the biggest details from the filing is Morgan Stanley’s approach toward Ethereum staking. According to the registration statement, the Ethereum Trust will directly hold ETH and track the spot price of Ethereum while taking part of its holdings to earn blockchain rewards.

Instead of distributing staking rewards directly to investors, the trust plans to reflect those rewards through the ETF’s net asset value.

The filing also explained that the product will remain a passive investment vehicle rather than an actively managed fund.

That means the ETF will mainly focus on tracking Ethereum’s market price alongside staking income generated from the underlying ETH held inside the trust.

This approach differs slightly from some competing crypto ETF structures currently being discussed across the market.

Solana ETF Also Plans Staking Integration

Morgan Stanley used a similar structure for its proposed Solana ETF. The filing stated that the Solana Trust will track the spot price of SOL while also staking a portion of the assets held by the fund.

However, the filing additionally highlighted risks connected to Solana’s network design, including references to its Proof of History architecture and blockchain infrastructure.

By including staking in both products, Morgan Stanley appears to be positioning its ETFs as more than simple price-tracking vehicles.

The strategy could help attract investors looking for both crypto exposure and additional yield opportunities tied to blockchain validation rewards.

Wall Street Continues Expanding Into Crypto ETFs

Morgan Stanley’s latest filings show how quickly major financial firms are increasing their exposure to digital assets.

Since spot Bitcoin ETFs launched in the United States in early 2024, trading activity has surged rapidly. Industry data now shows that cumulative U.S. spot crypto ETF trading volume has crossed $2 trillion.

Meanwhile, spot Ethereum ETFs currently hold around $20 billion in assets under management.

SEC Environment Becoming More Crypto-Friendly

Morgan Stanley’s filings also arrive during a changing regulatory environment in the United States. Under President Donald Trump’s administration, regulators have recently shown a more open stance toward crypto-related financial products compared to previous years.

That shift has created new opportunities for large banks and asset managers to pursue crypto ETF approvals that once faced major uncertainty.

Bloomberg ETF analysts reportedly described Morgan Stanley’s recent crypto filing activity as surprising because of how quickly the bank moved into multiple digital asset products within a short time period.

However, important details still remain unknown.

The filings did not reveal management fees, expense ratios, or official launch dates for either ETF.

Still, analysts believe the amended S-1 submissions represent another major step toward potential approval.