Morgan Stanley slashed fees on Ethereum and Solana ETFs to 0.14% — a new market record.
Morgan Stanley, a giant in traditional finance, is once again rewriting the rules of the game in the crypto ETF market. In updated S-1 registration forms filed with the SEC, the company has set a record-low fee for spot funds on Ethereum and Solana — just 0.14%. This is significantly lower than direct competitors, including Grayscale and Franklin Templeton, whose fees traditionally range from 0.20% to 0.50%.
Staking with Minimal Margin
The fee structure for staking participation deserves special attention. Morgan Stanley has allocated only 5% of the rewards received for network validation. Against the market average of 10–15% typically charged by management companies for staking services, this looks like aggressive dumping aimed at attracting institutional capital.
Reducing fees to 0.14% is not just a price war. It is a signal that Morgan Stanley views Ethereum and Solana not as speculative assets, but as long-term infrastructure projects. Funds with such fees become virtually free for large investors accustomed to expenses of 1–2% on traditional hedge funds.
It is important to note that the Solana ETF from Morgan Stanley is one of the first such products on the market. Setting such a low fee at the outset could force other issuers, such as VanEck or 21Shares, to reconsider their tariffs even before launch.
From my perspective, this move by Morgan Stanley is not just a marketing gimmick, but a strategic calculation. The company is clearly aiming for dominance in the digital asset segment and is willing to sacrifice short-term profits to capture market share. If the SEC approves the applications, we will witness a flow of billions of dollars from Grayscale's expensive trusts into these ultra-cheap ETFs.