Morgan Stanley Adds Ethereum Trust To Planned Crypto ETF Lineup

Core Insights - Morgan Stanley has filed with the U.S. Securities and Exchange Commission to launch an Ethereum Trust, expanding its crypto offerings alongside previously registered Bitcoin and Solana exchange-traded products [1][2] Group 1: Ethereum Trust Details - The Ethereum Trust is designed to track the price of ETH and distribute staking rewards to investors, with shares valued daily based on a pricing benchmark from major trading venues [3] - The trust intends to stake a portion of its ETH holdings and distribute rewards to shareholders at least quarterly, subject to IRS guidance [3] Group 2: Market Context and Strategy - The filings come as U.S. regulators have adopted a more accommodating approach to crypto markets, allowing traditional financial firms to expand ETF offerings tied to digital assets [2] - Morgan Stanley has broadened access to crypto funds to all clients, including those with retirement accounts, after previously limiting exposure to high-net-worth individuals [5] - The bank's CEO indicated that the firm's approach to crypto investments is contingent on regulatory comfort [6]