Morgan Stanley Files Staking ETH ETF in 3rd Crypto Offering

Morgan Stanley has filed an S-1 form with the SEC to launch the Morgan Stanley Ethereum Trust, a spot Ether exchange-traded fund (ETF) designed to track the price of spot Ether (ETH). Uniquely, the fund intends to engage third-party providers to stake an undisclosed amount of its holdings to generate passive yield, though it will not speculate on selling Ether for extra returns. This filing marks Morgan Stanley's third cryptocurrency ETF application, following recent filings for a Bitcoin (BTC) ETF and a Solana (SOL) ETF. The move signals deepening crypto involvement from the investment bank, which reportedly allowed its financial advisors to recommend crypto funds to IRA and 401(k) clients starting in October 2024. The potential new fund comes as spot Ether ETFs have shown resilience, experiencing only about $2.8 billion in outflows from their $15 billion peak despite a recent market correction.

(Source：Cointelegraph)