Morgan Stanley revolutionizes its strategy with new cryptocurrency staking products

The financial institution Morgan Stanley has announced the launch of exchange-traded funds (ETF) with innovative features focused on key digital assets. The main focus is on staking products, where the earnings generated will not be distributed as direct cash but will be automatically reinvested into the fund. This mechanism will allow the Net Asset Value (NAV) to increase organically.

How the staking model works

The new model operates under a “Utilization Rate” strategy that defines what percentage of the total assets will be allocated to validation activities. Not all available assets will be staked, only the amount considered optimal according to this predefined scheme. To execute these technical operations, Morgan Stanley has hired specialized external staking service providers. The fees for these services, as well as a portion retained by the sponsoring institution, will be deducted from the final rewards obtained.

Aggressive expansion into major digital assets

The new offerings include three relevant cryptocurrencies: Bitcoin, Ethereum, and Solana. This triple offensive marks a notable strategic shift for the Wall Street entity. For years, Morgan Stanley limited itself to distributing third-party developed products, such as those from well-known firms in the sector. Now, the institution has decided to develop its own competitive alternatives.

While Morgan Stanley oversees more than 20 exchange-traded funds, most operate under subsidiary brands like Calvert, Parametric, and Eaton Vance. According to expert analyses, these new products will represent only the third and fourth funds to directly bear Morgan Stanley’s corporate brand. The inclusion of Solana is particularly significant, as it is a more volatile asset compared to Bitcoin and Ethereum, the two largest by market capitalization.

This move reflects how traditional financial institutions continue to adapt to the crypto landscape, positioning their own offerings to directly compete in the digital fund market.