Morgan Stanley Shakes Up Crypto Funds With Low Fees and Staking

Morgan Stanley recently launched its new Ethereum and Solana exchange traded products, pulling in about $38 million in combined trading volume on their first day. The Morgan Stanley Ethereum Trust brought in $5.15 million of net inflows, capturing a big chunk of the daily market activity for US Ethereum funds. Meanwhile, the Solana Trust recorded healthy trading activity, though the broader Solana fund market saw capital outflows during the same session.

The firm is entering a competitive market by undercutting rivals on fees. Both new products carry a low 0.14 percent annual sponsor fee. They also offer competitive staking terms by taking a smaller cut of gross staking rewards compared to established competitors like BlackRock, Bitwise, and Grayscale. The Ethereum trust plans to stake up to 80 percent of its holdings, while the Solana trust aims to stake up to 100 percent, distributing net rewards to investors regularly.

Despite the strong start, Morgan Stanley still faces an uphill battle against older funds that hold billions in assets. However, the Wall Street giant brings massive distribution power with millions of client relationships and trillions in client assets. Traders should watch to see if these rock bottom fees and direct staking payouts can steal meaningful market share from early industry leaders in the coming months.