$ETH Ethereum Joins Morgan Stanley’s Suite of Proposed Spot Crypto ETFs
Morgan Stanley is seeking U.S. regulatory approval for a spot Ethereum exchange-traded fund (ETF).
According to a filing submitted Tuesday, the firm registered an S-1 for the proposed Morgan Stanley Ethereum Trust with the U.S. Securities and Exchange Commission (SEC). Specifically, the vehicle is a spot Ethereum ETF to provide investors with direct exposure to the asset.
The filing states that the fund would hold Ethereum directly and track its market price, without engaging in active trading or speculative sales. Notably, the filing also introduces the possibility of generating yield.
For instance, a portion of the fund’s Ethereum holdings may be directed to third-party staking providers. This approach enables the ETF to earn passive returns. The inclusion of staking aligns with broader industry efforts to incorporate yield-bearing features into crypto investment products.
From an operational standpoint, Morgan Stanley Investment Management is the sponsor. Meanwhile, CSC Delaware Trust Company is designated as the Delaware Trustee.
Meanwhile, several key details remain pending. The filing does not yet identify a custodian or specify the exchange on which the ETF would trade, indicating that additional disclosures are likely.
Part of a Broader Wave of Crypto ETF Filings
The Ethereum proposal is part of a wider push into digital assets. Earlier the same day, Morgan Stanley also submitted applications for spot Bitcoin and Solana ETFs.
Taken together, the filings suggest a coordinated strategy to expand exposure across multiple crypto assets within a regulated framework.
Moreover, the ETF push builds on earlier policy changes at the firm. For context, in October 2024, Morgan Stanley began allowing its financial advisors to recommend certain crypto funds.
However, those recommendations were
limited to eligible clients and applied to select account types, including IRAs and 401(k)s.
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