Morgan Stanley controls a rare built-in sales channel for its Bitcoin, Ethereum, and Solana ETFs, but staking rewards and fund size create a hidden tension that could push adviser money in a surprising direction.
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Morgan Stanley (NYSE:MS | MS Price Prediction) offers three crypto ETFs: the Bitcoin Trust (NYSEARCA:MSBT), the Ethereum Trust (NYSEARCA:MSSE), and the Solana Trust (NYSEARCA:MSOL), each with a modest annual fee of 0.14%. These funds hold Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH), and Solana (CRYPTO:SOL). The Bitcoin Trust was launched in April 2026, followed by the Ethereum and Solana funds on July 28 of the same year.
At the time of their launch, all three cryptocurrencies were experiencing significant downturns. Over the past year, Bitcoin has dropped about 32%, Ethereum has fallen about 43%, and Solana has lost about 49%. With one management team, a single fee structure, and one advisory group behind all three Morgan Stanley crypto ETFs, the question is: Which coin will receive investment first, and which will feel the impact most?
Morgan Stanley’s Advisers Give Its Crypto ETFs a Built-In Sales Channel
Morgan Stanley operates as a “wirehouse,” a large brokerage house where financial advisers manage client portfolios. One key advantage for Morgan Stanley is that it can put its own funds in front of its advisers without the approval process outside fund managers face, as it both creates the funds and employs the advisers who sell them.
Initial results illustrate this advantage. The Bitcoin Trust, MSBT, saw impressive early inflows, amassing over $381 million within three months of its launch, coinciding with a seven-week streak of rising interest in spot Bitcoin ETFs. Overall, Morgan Stanley’s ETF lineup holds over $14 billion across 22 different funds.
The competitive 0.14% fee gives Morgan Stanley an edge over other crypto funds. However, the low fee may matter less to clients, as many advisers focus on personal relationships over strict cost comparisons.
Morgan Stanley’s Ethereum and Solana ETFs Pass On Staking Rewards
A key difference among the three funds is their approach to staking. Staking involves locking up coins to support blockchain operations, earning new tokens as rewards. Both MSSE and MSOL stake and pass the rewards directly to their respective funds, with Morgan Stanley taking no cut.
On the other hand, Bitcoin operates on a mining system rather than staking, meaning MSBT does not provide any staking rewards for its investors. This difference may encourage advisers to seek Ethereum and Solana for added income potential, making them more attractive than Bitcoin.
Solana’s Smaller Fund Market Gets More From Each New Dollar
When examining fund sizes, Bitcoin clearly leads, with U.S. spot Bitcoin funds holding about $111 billion. In contrast, spot Ethereum funds account for around $18 billion, while U.S. spot Solana funds sit at about $2 billion.
However, Solana benefits most from each additional dollar invested because of its smaller market size. For example, if Morgan Stanley’s advisers allocated $100 million to each of the three funds, it would raise Solana’s fund assets by about 5% while barely affecting Bitcoin’s fund assets.
Additionally, MSOL faces less direct competition, with only eight other spot Solana funds compared to 11 rivals for MSBT.
Which Coin Will Gain the Most From Morgan Stanley’s Crypto ETFs?
While Morgan Stanley’s adviser money will likely flow into Bitcoin first because of its established market presence, Solana may see a greater impact per dollar invested. This is because each new investment carries more weight in a $2 billion market, particularly as MSOL also provides staking rewards.
However, Solana’s growth will be telling. If assets in U.S. spot Solana funds remain relatively stagnant near $2 billion while MSOL grows, it could indicate that advisers are reallocating funds within existing Solana investments rather than introducing new capital. In that case, the intended benefits of Morgan Stanley’s advisory network might not be as substantial as Solana’s small fund market would suggest.
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