The U.S. altcoin spot ETF market is diversifying rapidly following the consecutive launches of Ripple (XRP) and Solana (SOL) products in November 2025. Against this backdrop, Wall Street giant Morgan Stanley has entered the market armed with a low-cost strategy.

Morgan Stanley Joins the Fray with Industry-Low Fees and Maximum Staking

According to crypto-focused media outlet The Block, Morgan Stanley listed its Ethereum (MSSE) and Solana (MSOL) spot ETFs on NYSE Arca on the 28th (local time). Both products carry a sponsor fee of 0.14% annually, boasting the lowest cost level in the industry—lower than the Grayscale Mini Ethereum Trust (0.15%) and the Franklin Templeton Solana ETF (0.19%).

The Block reported that these products feature a groundbreaking structure that passes 95% of staking rewards on to investors. MSSE allows staking of up to 80% of its Ethereum (ETH) holdings, while MSOL permits staking of up to 100% of its Solana (SOL) holdings.

Established XRP ETF Market on High Alert Over Morgan Stanley

This low-cost strategy is expected to have a direct impact on the XRP ETF market, which has already built its own ecosystem. As of the 28th, there are a total of seven XRP spot ETFs listed in the United States, with combined assets under management (AUM) of approximately $1 billion and roughly 977.9 million XRP in custody. By AUM size, Bitwise leads with $312.82 million, followed by Canary with $253.2 million and Franklin Templeton with $252.15 million.

XRP ETFs experienced a net outflow of -$7.18 million in July, ending an eight-week streak of net inflows. The prevailing view in the market interprets this not as an individual negative for Ripple, but as supply and demand volatility across altcoin ETFs in general. As Morgan Stanley simultaneously offers the lowest fees and the highest staking ratios in the ETH and SOL markets, existing XRP ETF issuers are also likely to be drawn into a competition over fees and staking conditions in the near future.

Morgan Stanley Boasts Formidable Distribution Network... What Are the Key Points to Watch?

Morgan Stanley's crypto ETF business began in April with the launch of its Bitcoin Trust (MSBT), and within approximately three months, it grew its assets under management to between $381 million and $400 million. These ETH and SOL products are the result of filings submitted in January that were approved by the U.S. Securities and Exchange Commission (SEC) in about seven months under a relaxed review stance.

Notably, Morgan Stanley possesses 16,000 advisory personnel, $9.3 trillion in assets under management, and the E*TRADE distribution network, which began crypto trading this month. The ability of its new products to tap into immediate and broad distribution channels is a powerful competitive advantage unique to Morgan Stanley compared to other issuers.

Going forward, the key point to watch is how existing XRP ETF issuers—such as Bitwise, Franklin Templeton, and Canary—will respond to the fee and staking competition sparked by Morgan Stanley. Additionally, the scale of initial capital inflows into Morgan Stanley's new products, and whether the recent net outflows from XRP ETFs are a temporary phenomenon or a structural trend, will require continued close attention.

[This article was written with the assistance of AI. It is provided as investment reference information based on publicly available market data and does not recommend the purchase or sale of any specific security. Investment decisions and the resulting responsibilities lie solely with the investor.]