Morgan Stanley Solana ETF moves closer to launch on NYSE Arca

Morgan Stanley has registered shares of its proposed Solana exchange traded fund for listing on NYSE Arca, moving the product closer to a potential launch.

The Morgan Stanley Solana Trust filed a Form 8 A with the SEC on Wednesday to register its common shares under the Securities Exchange Act. The filing said NYSE Arca has approved the application to list the shares.

The fund is expected to trade under the ticker MSOL. It will hold SOL and seek to track the CoinDesk Solana Benchmark 4PM NY Settlement Rate, adjusted for expenses and rewards generated by staking part of its holdings.

Morgan Stanley Investment Management intends to begin staking when the offering launches, provided it determines that doing so would not create excessive legal, regulatory, or tax risks. BNY and Coinbase Custody will serve as custodians for the fund’s SOL.

The trust will retain 95% of gross staking rewards, with custodians and staking providers receiving the remaining 5%. Net rewards are expected to be distributed to shareholders in cash monthly, but at least once per quarter.

The ETF will charge an annual sponsor fee of 0.14% of its net asset value. The fund will not use leverage or derivatives and will support both cash and in kind share creations and redemptions.

The filing does not mean the SEC has approved the ETF or that trading has begun. The fund’s prospectus remains preliminary and states that shares cannot be sold until its S 1 registration statement becomes effective.