Morgan Stanley’s newly launched Ethereum and Solana ETFs recorded $33 million in combined net inflows on their second trading day, outpacing rival products despite headwinds in the broader Ethereum ETF category.
The Ethereum fund (MSSE) attracted $14.03 million while the Solana fund (MSOL) recorded $19.03 million in net inflows on Wednesday. On their first trading day, the two funds generated roughly $38 million in combined trading volume.
MSSE’s intake exceeded BlackRock’s ETHA despite the broader Ethereum ETF category recording net outflows of approximately $19 million during the session. MSOL accounted for all money entering US Solana ETFs during the day despite trading for only two days.
Eric Balchunas, Bloomberg ETF analyst, attributed the performance to Morgan Stanley’s distribution advantage. “The most significant entries into their categories since the first wave of launches, largely because few rivals can match Morgan Stanley’s distribution reach,” Balchunas said.
Both funds carry a 0.14% expense ratio and are designed to stake part of their holdings and distribute resulting rewards to shareholders. The two funds held $20 million in combined assets under management after the second trading day.
Distribution Scale
Morgan Stanley’s investment-management arm oversees $2 trillion in assets and employs 1,300 investment professionals. The firm has roughly 16,000 financial advisers and operates one of the largest wealth-management platforms in the world.
The scale of Morgan Stanley’s distribution network differentiates its crypto ETF offerings from competitors including BlackRock, Bitwise, Grayscale, VanEck, and 21Shares. The eight other Solana funds tracked hold a combined $842 million in net assets.
Precedent from Bitcoin Trust
Morgan Stanley’s Bitcoin trust, which launched earlier this year, has gathered approximately $400 million in assets since inception. That product demonstrated the firm’s ability to channel institutional capital into crypto vehicles through its adviser network.
The Ethereum and Solana ETF launches follow the opening of spot Bitcoin ETFs in January 2024, which prompted issuers to expand product offerings into altcoins. Ethereum ETFs have accumulated $11.19 billion in total net inflows since their launch.
