Why did Morgan Stanley add staking to its Ethereum and Solana ETF proposals?

Morgan Stanley amended its proposed Ethereum (CRYPTO) and Solana (CRYPTO) ETFs to allow the trusts to earn staking rewards from their underlying crypto holdings. The bank said 95% of staking rewards would remain within the trusts for investors.

What are the staking rewards arrangements in the Morgan Stanley crypto ETFs?

Morgan Stanley said 95% of staking rewards generated by Ethereum (CRYPTO) and Solana (CRYPTO) holdings would remain in the trusts. The remaining 5% would be paid to staking service providers and custodians as compensation.

How does staking work in the Morgan Stanley Ethereum ETF proposal?

Morgan Stanley said custodians would deposit Ethereum (CRYPTO) held by the trust into staking contracts operated by third-party validators. The filing disclosed that about 3.64 million ETH were waiting in the validator queue as of May 18, 2026, creating an estimated 63-day activation period.

What fee will Morgan Stanley charge on the proposed crypto ETFs?

Morgan Stanley (NYSE) said both the Ethereum (CRYPTO) and Solana (CRYPTO) trusts would charge a 0.14% annual sponsor fee. The bank also stated it would not receive any staking rewards beyond that management fee.

How does the ETF update fit into Morgan Stanley’s broader crypto strategy?

Morgan Stanley has been expanding its digital asset offerings through Bitcoin (CRYPTO), Ethereum and Solana investment products. The bank recently partnered with Galaxy Digital to help eligible clients access regulated crypto investment vehicles while maintaining market exposure.

Image for illustrative purposes only. Not a real photo.

Morgan Stanley adds staking to crypto ETFs

Written by Heidi Cuthbert Published Jun 19, 2026, 12:36 AMLast Updated Jul 4, 2026, 1:16 PM

Morgan Stanley amended its proposed Ethereum and Solana ETFs to include staking and a 0.14% annual sponsor fee.
The structure would retain 95% of staking rewards within the trusts, with 5% paid to staking providers and custodians.
The amendments expand Morgan Stanley’s regulated crypto offerings and could provide investors with staking-based income.

Morgan Stanley amended filings for its proposed Ethereum (CRYPTO:ETH) and Solana (CRYPTO:SOL) exchange-traded funds to include staking, allowing the trusts to earn blockchain rewards while charging a 0.14% annual sponsor fee.

The revised structure would allocate 95% of staking rewards to the trusts and 5% to staking service providers and custodians, while Morgan Stanley stated it would not receive staking rewards beyond its management fee.

“Staking income would accrue to the trusts rather than being redirected to the fund sponsor,” said Morgan Stanley in its amended registration statements.

The Ethereum filing stated that custodians would deposit ETH into staking contracts managed by third-party validators and disclosed that about 3.64 million ETH were waiting in the validator activation queue as of May 18, 2026, implying an estimated 63-day wait before newly staked assets could begin earning rewards.

Morgan Stanley said the Solana trust would use a similar staking model for SOL holdings through delegated validators, and following the amendments the proposed fee structure remained unchanged at 0.14% annually.

The filings form part of Morgan Stanley’s broader expansion into digital assets after the firm entered the spot Bitcoin ETF market and recently partnered with Galaxy Digital to provide crypto-related services to eligible wealth management clients.

Morgan Stanley stated that clients can convert holdings in Bitcoin (CRYPTO:BTC), Ethereum and Solana into regulated investment products through the Galaxy arrangement, which the companies said could reduce onboarding times by as much as 75% while maintaining market exposure.

At the time of reporting, Ethereum price was $1,708.24.

Morgan Stanley adds staking to crypto ETFs

Frequently asked questions

Assets related to this article