- NYSE Arca certified listing and registration approval for common shares of Morgan Stanley’s Ethereum and Solana trusts.
- The SEC made both Form S-1s effective July 23 at 4:00 p.m., one day before the exchange certifications.
- MSSE and MSOL are expected to list subject to notice of issuance, and the filings do not confirm that trading has begun.
July 25 (Crypto-News.Net) – NYSE Arca on July 24 certified its approval for listing and registration under the Exchange Act of common shares of beneficial interest of the Morgan Stanley Ethereum Solana trusts, covering the Morgan Stanley Ethereum Trust and the Morgan Stanley Solana Trust.
The exchange’s Ethereum Trust certification and Solana Trust certification were filed with the U.S. Securities and Exchange Commission on July 24. Each letter covers the common shares of the named trust under the Exchange Act of 1934.
The SEC had made both Form S-1 registration statements effective at 4:00 p.m. on July 23. The Ethereum Trust notice lists file No. 333-292593, while the Solana Trust notice lists file No. 333-292587.
Prospectuses set Morgan Stanley Ethereum Solana product terms for MSSE and MSOL
The trusts’ July 23 prospectuses say the shares are expected to list for trading on NYSE Arca, subject to notice of issuance. The Ethereum Trust prospectus assigns the ticker MSSE. The Solana Trust prospectus assigns MSOL.
Morgan Stanley Investment Management Inc. is the Delegated Sponsor for both trusts. Each prospectus sets a delegated sponsor fee accrued daily at an annualized rate of 0.14% of net asset value.
The products are passive exchange-traded funds. MSSE seeks to track ether using the CoinDesk Ether Benchmark 4PM NY Settlement Rate, after expenses and liabilities. MSOL uses the corresponding CoinDesk Solana Benchmark 4PM NY Settlement Rate for SOL. Crypto-News.Net’s Ethereum ETF explainer provides background on the share-based fund structure.
Neither trust plans to use leverage or derivatives to meet its investment objective. Their prospectuses instead describe price tracking and possible staking of part of their holdings. Each prospectus also says total proceeds from initial seed creation baskets are anticipated to be $1 million, with the trusts expecting to buy ether or SOL with those proceeds before listing.
On July 22, each trust filed a Form 8-A to register its common shares of beneficial interest for NYSE Arca under the Exchange Act, tying the exchange registration path to the related Securities Act file numbers.
Staking remains at the sponsor’s discretion
Morgan Stanley Investment Management may decide in its sole discretion whether either trust can stake assets. The decision must account for legal and regulatory risk. It must also consider tax risk, including whether staking could affect the trust’s qualification as a grantor trust.
The prospectuses therefore do not promise that staking will occur. They also do not guarantee that shareholders will receive staking-related returns. Where staking is used, the prospectuses say staking services providers and custodians are expected to receive an aggregate 5% of staking rewards, with the remainder retained by the trust. The Delegated Sponsor is not to receive or retain staking rewards.
The certifications and effectiveness notices do not establish that trading has begun or that the shares are available for purchase. The prospectuses retain the conditions that listing is expected and remains subject to notice of issuance. No first trading date was confirmed in the primary filings reviewed for this report.
Reporting by Zoran Spirkovski; Editing by Hermes Newsroom
Sources
NYSE Arca certification letter, Morgan Stanley Ethereum Trust – listing and registration approval under the Exchange Act.
https://www.sec.gov/Archives/edgar/data/2103976/000114336226000265/MSSE072426.pdf
NYSE Arca certification letter, Morgan Stanley Solana Trust – listing and registration approval under the Exchange Act.
https://www.sec.gov/Archives/edgar/data/2103547/000114336226000266/MSOL072426.pdf
SEC Notice of Effectiveness, Morgan Stanley Ethereum Trust – July 23 effectiveness time and Form S-1 file number.
https://www.sec.gov/Archives/edgar/data/2103976/999999999526002410/xslEFFECTX01/primary_doc.xml
SEC Notice of Effectiveness, Morgan Stanley Solana Trust – July 23 effectiveness time and Form S-1 file number.
https://www.sec.gov/Archives/edgar/data/2103547/999999999526002409/xslEFFECTX01/primary_doc.xml
Morgan Stanley Ethereum Trust prospectus – MSSE ticker, fee, benchmark, passive strategy and conditional staking terms.
https://www.sec.gov/Archives/edgar/data/2103976/000110465926086356/tm2534146-10_424b3.htm
Morgan Stanley Solana Trust prospectus – MSOL ticker, fee, benchmark, passive strategy and conditional staking terms.
https://www.sec.gov/Archives/edgar/data/2103547/000110465926086351/tm2534148-9_424b3.htm
Form 8-A12B, Morgan Stanley Ethereum Trust – Exchange Act class registration for NYSE Arca.
https://www.sec.gov/Archives/edgar/data/2103976/000110465926085727/tm2621036d1_8a12b.htm
Form 8-A12B, Morgan Stanley Solana Trust – Exchange Act class registration for NYSE Arca.
https://www.sec.gov/Archives/edgar/data/2103547/000110465926085728/tm2621036d2_8a12b.htm
