Morgan Stanley has updated its proposed Ethereum and Solana exchange-traded funds with a staking structure that allows 95% of staking rewards to remain within the trust while collecting a 0.14% annual sponsorship fee.
According to an amended S-1 registration statement filed by Morgan Stanley, both Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust intend to stake a portion of their underlying crypto holdings to generate additional income for investors.
NEW: @MorganStanley submitted amendments for both Ethereum and Solana ETFS. Ethereum: Native Solana: So111111111111111111111111111111111111112 pic.twitter.com/SxPiszp9RS
— James Seyffert (@JSeyff) June 18, 2026
The filing revealed that staking service providers and custodians will receive 5% of staking rewards as compensation, with the remaining 95% remaining in the fund.
Under the proposed structure, Morgan Stanley said sponsors would receive no staking fees in excess of management fees. Staking income will accrue to the trust rather than being directed to the fund sponsor, according to the filing.
The amendment represents another step in Morgan Stanley’s efforts to expand its digital asset product lineup after entering the spot Bitcoin ETF market earlier this year.
Ethereum application outlines validator limits and staking delays
Details contained in Ethereum’s filing detail how the staking process will take place. A custodian will hold the deposit, Morgan Stanley said. $ETH It is held in an Ethereum staking smart contract by the trust while a third-party staking service provider operates the validator on behalf of the fund.
The filing notes that staked Ether remains subject to significant fines if validators fail to meet network requirements or violate protocol rules. In such a case, part of the stake will be $ETH It may be removed from the validator’s balance.
Morgan Stanley also revealed network capacity data related to Ethereum staking. According to the submitted documents, approximately 3.64 million people $ETH As of May 18, 2026, it was waiting in the validator activation queue.
The document states that Ethereum currently limits validator activations to 56 validators per epoch, which equates to approximately 57,600 validators. $ETH Enter staking daily. Based on these numbers, Morgan Stanley estimated the amount of new capital invested. $ETH There may be a waiting period of approximately 63 days before you can earn your staking rewards.
While the filing focused on operational details, the disclosure comes as the asset manager continues to work with U.S. regulators on an ETF structure that incorporates staking alongside direct crypto exposure.
Solana Trust follows a similar reward distribution model
Another proposed amendment to the Morgan Stanley Solana Trust describes a similar staking arrangement. $SOL Collection. Validators operated by staking service providers may act as delegated validators for the trust’s staked assets, according to the filing.
Morgan Stanley said administrators involved in the staking process do not control the private keys associated with delegated data. $SOL. However, unlike Ethereum’s application, Solana’s amendment did not specify a daily amount limit. $SOL May go into staking.
The filing arrives as Morgan Stanley continues to add crypto-related services across its wealth management division. As previously reported by crypto.news, Morgan Stanley Wealth Management recently partnered with Galaxy Digital to enable eligible high-net-worth clients to convert their digital asset holdings into spot crypto investment products through referral agreements.
According to the companies, customers will be able to lend assets such as Bitcoin, Ether and Solana to Galaxy Digital and receive shares in regulated crypto investment products such as the recently launched Morgan Stanley Bitcoin Trust.
The companies said this process can reduce onboarding time from cryptocurrencies to ETPs by up to 75%, while allowing investors to maintain market exposure without first selling their digital assets.
Taken together, the ETF amendments and the Galaxy Digital deal add a new crypto investment channel for Morgan Stanley clients, and Morgan Stanley Bank continues to build products related to Bitcoin, Ethereum, and Solana through regulated investment structures.
