Morgan Stanley named Coinbase as custodian and staking facilitator in fresh S-1 amendments for its proposed spot ether and solana ETFs, filed on July 14. Both funds keep a 0.14% sponsor fee, and the filings allow staking of 50% to 80% of the trust’s ETH and up to 100% of its SOL, pending SEC approval.
Morgan Stanley updated its S-1 registration statements for the proposed spot ether and solana funds on July 14, naming Coinbase to provide custody and facilitate staking alongside BNY Mellon, which was designated joint custodian for the Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust. The update marks the bank’s third round of revisions since its January debut filings.
Staking sits at the center of the design
The filings keep staking central to how the products would work. The ethereum trust intends to stake 50% to 80% of its ether under normal conditions, while the solana trust may stake up to 100% of its SOL, holding a portion liquid for redemptions and expenses. Staking providers and custodians would share 5% of rewards, with 95% accruing to each trust.
Earlier filing rounds named Figment Inc., Galaxy Blockchain Infrastructure LLC, and Coinbase Canada Inc. as staking service providers. The ethereum product is expected to trade under the ticker MSSE, with the solana fund listing on NYSE Arca as MSOL.
A fee war with a proven playbook
Both funds carry a 0.14% annual sponsor fee. Morgan Stanley set that fee in its second amendment round, undercutting Grayscale’s 0.15% ether product and marking the lowest fees in the market at the time. The bank has tested this approach before: its Bitcoin Trust (MSBT) attracted $300.7 million in inflows after launching in April 2025 with the same low-fee strategy.
The rapid cadence of amendments — original filings in January, revisions on June 18, and now the July 14 update — suggests active dialogue with the Securities and Exchange Commission. Approval remains pending, and the SEC has not committed to a timeline.
Source: Bitcoin.com News
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