Overview
- Morgan Stanley filed second-amended S-1/A registration statements, which were submitted Thursday, adding staking mechanics, a 0.14% annual sponsor fee and proposed tickers MSSE for Ethereum and MSOL for Solana.
- The filings propose that 95% of staking rewards would accrue to the trusts for investors while 5% would be paid to custodians and third‑party staking service providers named in the documents.
- For the Ethereum trust the papers name custodians and validators including BNY Mellon, Coinbase entities, Figment and Galaxy, and disclose staking risks such as slashing, validator performance and third‑party operational reliance.
- Morgan Stanley flags a practical delay to earning staking rewards by citing roughly 3.64 million ETH in the validator activation queue, which it estimates could create about a 63-day wait before newly staked ETH begins to generate yield.
- The amendments advance the firm’s crypto product push after its April Bitcoin trust launch, signal aggressive fee competition in the crypto ETF market, and leave final staking proportions, exact operational terms and a launch date subject to further SEC review.