Morgan stanley, a banking behemoth, filing for an ethereum etf, especially one designed to include staking rewards, is a significant move that legitimizes the asset and could attract substantial institutional capital.
The news comes from u.today, reporting on an official filing by morgan stanley, indicating a verifiable and direct action by a major financial institution.
The filing by a banking giant like morgan stanley for a spot ethereum etf, particularly one that includes staking rewards which are added to the nav, significantly legitimizes ethereum as an institutional asset. this move could unlock massive institutional capital flow into eth, increasing demand and potentially reducing circulating supply through staking, both of which are strong bullish catalysts.
While there might be immediate speculative interest and pumps, the primary and most profound impact of an etf from a firm like morgan stanley is to attract long-term institutional investment and integrate eth into traditional finance, a process that unfolds over months to years as the etf gains traction.
Cover image via U.Today Read U.TODAY on Google News Multinational banking behemoth Morgan Stanley has filed for an Ethereum exchange-traded fund (ETF). Advertisement According to the filing, the trust is explicitly designed to offer staking rewards. The Trust will not distribute staking rewards directly to shareholders as cash dividends. Instead, the rewards will be added to the Trust’s assets, which is expected to increase the Net Asset Value (NAV) of the Shares. HOT Stories Morning Crypto Report: XRP Hits Brutal 760,456% Liquidation Imbalance, 'I Feel Fine': Ex-Ripple CTO Speaks Out on Retirement, Coinbase CEO Reveals Main Target for 2026 CNBC Declares XRP the 'Breakout Trade of 2026' Ripple President: We Still Plan to Remain Private Top US Exchange Puzzled by XRP Rally The Trust will not stake all of its assets. It uses a "Utilization Rate" model to determine the optimal amount to stake (generally expected to be between a specific percentage range. Advertisement Morgan Stanley will engage third-party staking services providers to handle the technical validation. The rewards earned will be net of fees paid to these providers and a portion retained by the sponsor. "Pretty remarkable" As reported by U.Today , Morgan Stanley also filed for Solana (SOL) and Bitcoin (BTC) earlier this week. The filings are a dramatic pivot for the Wall Street giant. After years of merely distributing third-party products from firms like BlackRock and Fidelity, Morgan Stanley is now launching its own competitors. Advertisement You Might Also Like Tue, 01/06/2026 - 11:24 BREAKING: Banking Behemoth Morgan Stanley Files for Solana and Bitcoin ETFs By Alex Dovbnya According to Matt Hougan , Chief Investment Officer at Bitwise, this is not business as usual. Morgan Stanley technically manages over 20 ETFs, but the vast majority operate under its subsidiary brands like Calvert, Parametric, and Eaton Vance. "These will be the 3rd and 4th ETFs to bear the 'Morgan Stanley' brand," Hougan noted on X. "Pretty remarkable." The inclusion of Solana alongside Bitcoin and Ethereum is perhaps the most aggressive component of the spree, given that it is viewed as a riskier bet compared to the two biggest assets. #Ethereum News #Morgan Stanley News