Morgan Stanley is further expanding its digital asset business. The company disclosed that two of its exchange products tracking Ethereum and Solana will begin trading on the NYSE Arca, extending its product line from Bitcoin to more mainstream crypto assets.
Two new products began trading
The announcement reveals two new products: Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust, with the corresponding codes MSSE and MSOL. Both products utilize the CoinDesk benchmark index, allowing investors to gain price exposure to ETH and SOL without directly holding the tokens.
MSSE tracks the CoinDesk Ether Benchmark 4PM NY Settlement Rate, while MSOL tracks the CoinDesk Solana Benchmark 4PM NY Settlement Rate. This design is consistent with the index framework of its previous Bitcoin products.
The fee rate is 0.14% and the pledge proceeds are allocated.
The company disclosed that both products have a fee rate of 0.14%. According to reports, this level is currently low in the market. In addition to the low fee rate, the products also plan to use a portion of ETH or SOL holdings for staking, with the related returns being returned to investors.
With the launch of US spot Bitcoin ETFs in early 2024 gradually driving demand, asset management firms are continuing to expand their range of crypto products. Ethereum products are already relatively mature, making Solana the new focus of competition. SoSoValue data shows that there are currently eight Solana exchange-traded funds on the market, with a total net asset value of approximately $889.3 million.
Bitcoin products have exceeded $381 million.
This new offering builds upon Morgan Stanley's existing Bitcoin products. The company's previously launched Morgan Stanley Bitcoin Trust managed over $381 million in assets as of July 16th. This product tracks the CoinDesk Bitcoin Benchmark Rate.
In a press release, Amy Oldenburg, head of digital asset strategy at Morgan Stanley, said that as clients’ interest in digital assets grows, the company is offering more product options to cover both traditional and decentralized asset allocation needs.
Consultant networks bring distribution advantages
Morgan Stanley possesses a strong channel advantage on the sales side. Its wealth management business has approximately 16,000 financial advisors managing over $9 trillion in client assets; at the same time, the E*TRADE platform allows it to directly reach a large number of independent trading investors.
Additional information:The article mentions that BlackRock recently launched its first crypto income ETF, indicating that some clients are beginning to seek income-generating products other than long-term holding of Bitcoin.
