“Digital assets are becoming an increasingly important component of diversified investment portfolios,” Amy Oldenburg, head of digital asset strategy at Morgan Stanley, said in a press release. “As client interest in digital assets continues to grow, we're focused on providing a range of digital asset solutions that allow investors to diversify their portfolios across traditional and decentralized asset classes while also adhering to Morgan Stanley's standards for governance, infrastructure and risk management.”
Both products charge a 0.14% expense ratio — the lowest on the market — and plan to stake a portion of their ether or SOL holdings, with any staking rewards passed through to investors rather than kept by Morgan Stanley.
The products build on the Morgan Stanley Bitcoin Trust (MSBT), which debuted earlier this year and had gathered more than $381 million in assets under management through July 16. The bitcoin fund tracks the CoinDesk Bitcoin Benchmark Rate.
BlackRock, which owns the largest spot bitcoin ETF on the market, recently brought its first crypto income ETF to the market, as clients are increasingly looking for steady income from their long-term bitcoin investments.
Morgan Stanley also enters the market with a built-in distribution advantage. Its wealth management business includes roughly 16,000 financial advisors overseeing more than $9 trillion in client assets, while its ownership of E*TRADE gives the firm a direct line to millions of self-directed investors.