Morgan Stanley set management fees for spot Ether and Solana ETFs at 0.14%, undercutting competitors

Morgan Stanley has unveiled a highly competitive fee structure in its latest filings for Ether and Solana spot exchange-traded funds, aiming to beat rival offerings on cost. According to amendments submitted to the US Securities and Exchange Commission (SEC), the annual management fee for both funds is set at 0.14%.

Market’s lowest ETF fees

This newly announced rate marks the lowest fee proposal among spot Ether and Solana ETFs currently trading in the US. Data from Farside Investors shows that the current lowest fee for a spot Ether ETF stands at 0.15%, offered by the Grayscale Ethereum Staking Mini ETF. For spot Solana ETFs, the previous benchmark was 0.19%, set by Franklin Templeton’s Franklin Solana ETF.

Morgan Stanley’s decision to update its filings for a second time since its initial submission in January has also drawn attention. Such revisions are typically seen as a sign that products are approaching the SEC’s final review and possible approval. If cleared, these funds would become the 11th spot Ether ETF and the 7th spot Solana ETF to launch in the US market.

Price competition intensifies with late entry

Entering the spot crypto ETF market later than many rivals, Morgan Stanley is leveraging low pricing as its chief strategy. The firm previously set a 0.14% fee for its Bitcoin ETF launched in April, undercutting the 0.15% fee for Grayscale’s mini Bitcoin ETF. This area of the market has so far been dominated by major issuers such as BlackRock and Fidelity.

On its first day of trading, Morgan Stanley’s Bitcoin ETF recorded $30.6 million in inflows. Since then, total net inflows have reached $331 million. This performance has enabled the fund to surpass other products brought to market in January 2024, including those from Invesco, Franklin Templeton, and CoinShares.

Staking structure and ticker codes finalized

The updated regulatory documents also confirm that staking services for both ETFs will be provided by Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada. In addition, a 5% staking fee will be levied on any income generated through staking activities.

For context, staking involves locking specific cryptocurrencies to support network security and earn rewards. In ETF structures, this process is managed by institutional providers, rather than by investors directly.

Morgan Stanley stands among America’s largest financial institutions, with core strengths in asset management and investment banking. The applications indicate that the Ether ETF will trade under the name Morgan Stanley Ethereum Trust with the ticker “MSSE,” while the Solana product will be listed as Morgan Stanley Solana Trust and use the ticker “MSOL.”

The latest amendments in Morgan Stanley’s SEC filings highlight the firm’s readiness to intensify competition on both cost and product features in the US crypto ETF arena. The timeline for market entry will ultimately depend on the SEC’s approval process.

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