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▲ Ethereum (ETH) and Solana (SOL)/AI-generated image
Wall Street financial giant Morgan Stanley has abruptly submitted an amended application for the launch of spot Ethereum (Ethereum, ETH) and Solana (Solana, SOL) ETFs, signaling the entry of altcoins into the institutional sphere.
According to crypto-specialized media Coingape on May 20 (local time), Morgan Stanley submitted amended S-1 registration applications for spot Ethereum and Solana ETF products to the U.S. Securities and Exchange Commission. This application targets the Morgan Stanley Ethereum Trust and Solana Trust. The tickers for the spot Ethereum ETF specified in the amendment are MSSE, and for the Solana product, MSOL. Morgan Stanley plans to replicate the Bitcoin (Bitcoin, BTC) spot ETF launch model initiated in April.
The submitted documents detail the trust's structure and the process of issuing and redeeming shares through designated participants. Notably, these documents explicitly include provisions related to staking, linked to the trust's underlying assets, drawing significant investor attention. According to the Ethereum application, the trust will track the spot Ethereum price while also utilizing a portion of the Ethereum held in its portfolio for staking. As the trust is not an active investment entity, it does not aim for additional profits beyond tracking Ethereum's price and earning staking rewards.
Morgan Stanley applied the same mechanism to the Solana spot ETF application. The application includes valid language stating that the trust will track the Solana price and commit a portion of its held tokens to staking. Furthermore, potential risk factors associated with Solana's unique Proof-of-History architecture and network design were also included in the application as risk disclosures. Morgan Stanley has already introduced Bitcoin and Ethereum trading, and this move is regarded as a significant step towards expanding the altcoin spot ETF market.
However, the specific fee structure remains undisclosed in these documents. Morgan Stanley did not specify detailed management fee information or expense ratios for either product. The anticipated launch date has also not been officially disclosed at this time. Meanwhile, according to the amended application, cash-based share creation and cash redemption methods through designated participants are supported, and the trust's detailed operational processes will be entrusted to a delegated sponsor.
Morgan Stanley's submission of these amended S-1 documents coincides with a period where competition in the U.S. spot cryptocurrency ETF market is fiercely expanding beyond Bitcoin to altcoins in general. In a similar vein, asset management firm Grayscale also submitted amended S-1 documents for the launch of its BNB Coin ETF, signaling the dawn of an all-encompassing altcoin ETF battle.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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