Morgan Stanley Files for Ethereum Staking ETF as Crypto Offerings Expand
Morgan Stanley has filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Ethereum exchange-traded fund (ETF), further expanding its presence in the growing market for regulated crypto investment products.
According to a Tuesday filing, the proposed Morgan Stanley Ethereum Trust would buy and hold Ether and track its spot market price. Unlike trading-focused funds, the ETF would not actively sell Ether to generate returns. Instead, it plans to stake a portion of its holdings through third-party providers to earn additional yield.
The filing marks Morgan Stanley’s third crypto ETF proposal. Earlier the same day, the bank submitted similar filings for spot Bitcoin and Solana ETFs.
Morgan Stanley Investment Management is listed as the sponsor of the Ethereum ETF, while CSC Delaware Trust Company would serve as trustee. Details on custodians and the exchange where the fund would trade were not disclosed in the filing.
The move highlights Morgan Stanley’s growing commitment to digital assets. The bank reportedly began allowing its financial advisers to recommend crypto funds to eligible clients, including those with IRAs and 401(k) accounts, in October 2024.
If approved by the SEC, the Ethereum ETF could add new institutional demand for Ether. Spot Ether ETFs have held up relatively well despite recent market volatility, with outflows remaining limited compared to earlier inflows, according to Bloomberg ETF analyst James Seyffart.
Recent data also shows continued interest from large investors, even as some professional traders have reduced exposure. New wallets created in the past two weeks have accumulated billions of dollars worth of Ether, signaling renewed demand from new market participants.
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