Morgan Stanley has expanded its cryptocurrency fund lineup by launching two new exchange-traded products (ETPs) tracking Ethereum and Solana, offering staking rewards to investors.
In a recent move to diversify its crypto offerings, Morgan Stanley Investment Management introduced the Morgan Stanley Ethereum Trust (MSSE) and the Morgan Stanley Solana Trust (MSOL), both of which are designed to track the performance of Ether (ETH) and Solana (SOL).
These new funds join Morgan Stanley’s existing Bitcoin trust (MSBT), launched earlier this year, making it one of the first major US commercial banks to offer a spot Bitcoin ETF. As of July 16th, MSBT had over $381 million in assets under management.
The newly introduced ETPs will use benchmarks from CoinDesk for tracking performance and carry an expense ratio of 0.14%. Additionally, both funds plan to stake a portion of their holdings, with staking rewards being passed directly to investors without any retention by Morgan Stanley.
This expansion comes after the bank launched spot cryptocurrency trading on its E*TRADE platform earlier in July, allowing eligible clients to buy, sell, and hold Bitcoin, Ethereum, and Solana through a partnership with Zero Hash. The move reflects an increasing institutional interest in cryptocurrencies as investment vehicles.
The launch of these new funds is significant for the broader crypto market, signaling that traditional financial institutions are becoming more comfortable integrating blockchain technologies into their portfolios. This could potentially lead to increased adoption among retail investors who may seek exposure through ETFs and ETPs rather than direct trading or staking.
Traders should closely monitor how these new products perform in terms of liquidity and investor demand, as well as any regulatory developments that might impact the crypto space moving forward.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.