Morgan Stanley Files Ethereum Staking ETF for Yield

Morgan Stanley has taken another step into crypto markets by filing for an Ethereum exchange-traded fund that includes staking income.

In a filing submitted to the US Securities and Exchange Commission, the investment bank proposed a new product called the Morgan Stanley Ethereum Trust. The fund is designed to hold Ether directly and track its market price, rather than use derivatives or leverage.

What makes the filing notable is its approach to yield. According to the document, the ETF does not plan to trade Ether actively or sell holdings to chase profits.

Instead, it intends to use third-party staking providers to stake part of its Ether balance. This would allow the fund to earn staking rewards, which could add extra return on top of price movements.

If approved, the product would give investors a way to gain both Ether price exposure and passive yield through a regulated ETF structure.

A Deeper Dive Into Crypto

This is Morgan Stanley’s third crypto ETF filing in a short period. The bank also submitted paperwork for spot Bitcoin and Solana ETFs, signaling a broader push into digital asset investment products.

The filing lists Morgan Stanley Investment Management as the sponsor of the Ethereum ETF. A Delaware trust company is named as trustee, but details around custody and the exchange where the ETF would trade were not included at this stage.

The move fits into the bank’s recent crypto strategy. Since late 2024, Morgan Stanley has allowed its financial advisers to recommend certain crypto funds to eligible clients, including those with retirement accounts.

Interest in Ether investment products has remained steady despite recent market stress. Analysts note that spot Ether ETFs have seen limited outflows compared to the size of the overall crypto market decline, suggesting long-term investors are holding their positions.

If the SEC approves the filing, the fund could bring fresh institutional demand to Ethereum, while also highlighting staking as a growing feature of traditional investment products.

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