Morgan Stanley Adds Staking Yield to Ethereum and Solana ETF Filings

The amended S-1 registration statements detail how the firm intends to manage these assets. Custodians will deploy holdings into staking smart contracts, with third-party service providers operating validators on behalf of the funds. Morgan Stanley clarified that the sponsor will not receive staking rewards, as all generated income is slated to accrue directly to the trusts, beyond a 0.14% annual management fee.

Technical disclosures within the Ethereum filing highlight inherent network risks and operational bottlenecks. The firm noted that staked assets remain vulnerable to slashing penalties if validators fail to adhere to protocol rules. Furthermore, based on network data from May 18, 2026, the validator queue holds approximately 3.64 million ETH. Given current activation limits of 56 validators per epoch, the bank estimates a roughly 63-day wait period before new assets begin earning rewards.

The Solana Trust follows a parallel model for reward distribution, though it lacks the specific daily activation constraints found in the Ethereum filing. These amendments follow Morgan Stanley’s recent push to deepen its crypto footprint, including a partnership with Galaxy Digital that allows high-net-worth clients to convert digital assets into regulated investment products. By integrating staking, the bank aims to provide investors with additional income streams while maintaining exposure to underlying crypto assets within a regulated framework.