Morgan Stanley files spot Ethereum ETF that would pass staking rewards

Beincrypto reports Morgan Stanley filed for spot Ethereum exchange-traded funds on Wednesday that are designed to track ETH’s price while passing staking rewards through to shareholders.

The bank also submitted ETF applications linked to Bitcoin and Solana on Tuesday, marking its first involvement in this corner of the ETF market about two years after crypto-focused ETFs began to proliferate in the US. Morgan Stanley’s S‑1 filing, from an institution managing $1.6 trillion in assets, follows its October decision to drop restrictions on financial advisors recommending crypto ETFs and comes days after Bank of America expanded client access by authorizing 1–4% portfolio allocations to cryptocurrency.

The filings arrive amid broader market weakness: most spot Bitcoin ETF assets remain retail-concentrated and have seen losses, the Bitcoin market capitalization has fallen roughly $600 billion since October, institutional ownership has risen from 20% to 28%, small-cap indices are near November 2020 levels, and newly launched altcoin ETFs have slipped into negative territory. Further uncertainty looms as US President Donald Trump is expected to announce his nominee for Federal Reserve Chair as soon as Friday, with Kevin Hassett named a leading contender to replace Jerome Powell.

Key Topics

Crypto, Morgan Stanley, Ethereum, Bitcoin, Solana, Staking Rewards