Morgan Stanley (NYSE: MS), one of the world’s largest investment banks, has launched two new spot cryptocurrency ETFs covering Ethereum and Solana (CRYPTO: SOL).
The announcement came on July 28, expanding the firm’s crypto ETF offerings beyond its Bitcoin Trust, which debuted in April.
Both new funds carry an expense ratio of 0.14%, matching the fee structure of the firm’s Bitcoin ETF and undercutting most competitors in the space.
Most Bitcoin ETFs on the market charge between 0.20% and 0.25% per year, making Morgan Stanley’s pricing competitive across its entire crypto ETF range.
A key feature of the new Ethereum and Solana ETFs is integrated staking, with 95% of staking rewards expected to pass through directly to shareholders.
The staking providers retain the remaining 5%, and Morgan Stanley does not keep any portion of those rewards for itself.
Spot crypto ETFs track the performance of the underlying coin minus fees, offering investors a regulated and familiar investment vehicle without requiring direct ownership of the assets.
One of the most significant advantages these ETFs provide is easy access to crypto exposure inside tax-advantaged accounts such as IRAs and Roth IRAs.
Investors who hold a Solana ETF inside a Roth IRA, for example, could benefit from tax-free withdrawals in retirement, provided they meet the qualifying conditions of being at least 59 and a half and holding the account for at least five years.
Solana has climbed approximately 165% over the last five years as of July 29, highlighting the long-term return potential that successful cryptocurrencies can generate for patient investors.
Crypto ETFs also simplify tax reporting considerably, as investors receive standard brokerage forms instead of navigating complex crypto-specific tax rules and software.
Morgan Stanley’s more than 16,000 financial advisors can now offer these Ethereum and Solana products to clients, potentially broadening the investor base for both assets significantly.
The move carries broader implications for the crypto market, serving as another institutional signal of legitimacy at a time when cryptocurrency is navigating a bear market period.
While a pair of ETF launches will not reverse current market conditions on their own, the quality and competitive pricing of these products position them as serious long-term investment options for crypto-curious investors.
