Solana news: Morgan Stanley Discloses Fee Structure for Proposed Solana and Ethereum ETFs
Morgan Stanley Files Updated ETF Details
Morgan Stanley has submitted amended S-1 registration statements for its proposed Ethereum and Solana exchange-traded funds (ETFs). This move follows the bank's earlier launch of a spot Bitcoin ETF in April and indicates growing institutional engagement with crypto assets.
Fee Structure and Staking Mechanisms
Both the Morgan Stanley Ethereum Trust and Solana Trust propose an annual sponsor fee of 0.14% of each fund’s net asset value (NAV), charged daily and paid monthly. The filings also outline staking mechanisms, allowing the trusts to stake their Ethereum and Solana holdings to generate additional income.
- 95% of staking rewards remain within the trusts
- 5% of rewards go to staking service providers and custodians
- The sponsor will not receive staking rewards beyond the management fee
This structure means most staking income benefits ETF investors, potentially resulting in higher returns compared to funds that do not stake assets.
Ethereum ETF Staking Details
For the Ethereum ETF, custodians will place ETH into staking contracts, with service providers running validators. The filing notes that staked ETH is subject to slashing if network rules are breached. As of May 2026, approximately 3.64 million ETH was queued for validator activation, with a daily entry limit of 57,600 ETH, leading to an estimated 63-day wait for new stakers.
Solana ETF Staking Approach
The Solana ETF will use a similar staking method, though the filing does not specify a daily staking limit. Validators operated by service providers may act as delegated validators for the trust’s staked SOL. Importantly, staking custodians will not control the private keys of the staked SOL tokens.
Context for UK Investors
Morgan Stanley’s filings reflect a broader trend of traditional financial institutions exploring crypto ETFs. While these products are not yet available in the UK, their development could influence future regulatory discussions and investment opportunities for UK-based investors and asset managers interested in Solana and Ethereum exposure.
Why This Matters
The introduction of staking mechanisms in proposed ETFs could set new standards for crypto investment products. UK investors and institutions monitoring Solana’s growth may find these developments relevant as the UK market considers its own approach to crypto ETFs and staking-based products.
