Key Takeaways:
- Morgan Stanley filed for spot Solana and Ethereum ETFs at a record-low 0.14% fee.
- SOL rebounded to the low-$70 range as institutional demand accelerated.
- A 95% staking reward pass-through undercuts all existing US crypto ETF products.
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Solana jumps to $70 on Morgan Stanley's 0.14% spot ETF fee
Solana rose to the low-$70 range Friday after Morgan Stanley filed a spot SOL ETF at a 0.14% fee, the lowest in the US market.
According to the amended S-1 registration statement filed with the SEC on June 18, the two products — MSSE for Ethereum and MSOL for Solana — will list on NYSE Arca with a single unitary sponsor fee that accrues daily on net asset value.
The 0.14% fee undercuts Franklin Templeton's SOEZ at 0.19% and existing spot Ethereum ETFs from BlackRock and Fidelity in the 0.20% to 0.30% range. A portion of each fund's holdings will be staked via Figment, Galaxy Infrastructure and Coinbase Canada, with 95% of staking rewards flowing back to shareholders while Morgan Stanley collects no additional cut beyond its management fee.
The filing raises the question of whether Morgan Stanley's fee structure effectively ends the crypto ETF price war before rivals can respond. The SEC has not set an approval date for either product, though the June 18 amendment marks the first time a specific fee was confirmed after prior filings in January, March and May left the figure blank.
Solana's rebound to the low-$70 range follows a period of broader market weakness that saw the total crypto market cap fall 2.4% to $2.23 trillion overnight after the filing news broke, according to CoinGecko. The token had traded at $68.97 as of June 19, according to Investing News Network data.
The Bitcoin ETF fee war of 2024 saw BlackRock's IBIT at 0.25% and Grayscale's Bitcoin Mini Trust at 0.15% engage in rounds of cuts and temporary waivers to capture assets under management. Morgan Stanley's 0.14% fee on both its Ethereum and Solana products now sets a new floor for the asset class, potentially forcing competitors to lower their own fees or differentiate on staking yield structures.
The staking mechanics are a key differentiator. Of all staking rewards generated, 95% flows directly back into the trust, boosting net asset value for shareholders, while only 5% is paid to the three named providers. This structure gives Morgan Stanley's products a yield advantage over rivals that do not offer staking or take a larger cut of rewards.
This article is for informational purposes only and does not constitute investment advice.
