Morgan Stanley Files for Ethereum ETF With Staking Twist

Morgan Stanley filed a registration statement with the U.S. Securities and Exchange Commission on Jan. 6, 2026, to launch the Morgan Stanley Ethereum Trust, a spot-style fund designed to hold ether and track its price according to reports. The filing also stated the fund would include staking rewards, allowing investors to benefit from both price performance and yield from staking as reported. This move follows Morgan Stanley’s recent filings for Bitcoin and Solana ETFs, indicating a broader expansion into digital assets.

The Ethereum Trust is structured as a passive investment vehicle, meaning it would not attempt to outperform ether’s price through active trading according to filings. Instead, the fund would reflect staking rewards through its net asset value, with distributions at least quarterly as noted. The trust would be sponsored by Morgan Stanley Investment Management, which oversees more than $1.8 trillion in assets.

Morgan Stanley’s filing comes as Ethereum’s price consolidates near $3,200, marking the first daily decline in seven sessions. The price remains above a critical support band, with key resistance levels ahead near $3,350 according to analysis. Analysts are watching whether Ethereum can break through this level to resume its upward trajectory.

Why Did This Happen?

The filing reflects Morgan Stanley’s broader strategy to expand its crypto footprint in early 2026 as detailed. This aligns with the Trump administration’s more accommodating approach to crypto markets, opening the door for traditional financial firms to expand their offerings. The firm’s move also follows its October 2025 decision to broaden access to crypto funds for all clients, including those with retirement accounts.

Morgan Stanley has also filed for Bitcoin and Solana ETFs, indicating a coordinated push into multiple crypto assets. The firm’s filings suggest a strategic shift from distributing third-party crypto products to building in-house vehicles, which could help it retain management fees.

How Did Markets React?

Ethereum’s price response has been mixed in the wake of the filing. After a six-day rally, ETH posted its first daily decline, closing near $3,255. The pullback came after Ethereum reclaimed multiple resistance levels, reducing short-term leverage and easing upside pressure. Despite the drop, the price remains above the $3,200 support zone, which is seen as critical.

The broader crypto market has also seen significant inflows into spot ETFs. Bitcoin ETFs recorded $471.3 million in inflows on Friday, the highest total since mid-November. Ethereum ETFs, while slightly behind, have also seen growing interest, with cumulative inflows reaching $20 billion.

What Are Analysts Watching Next?

Analysts are closely watching whether Ethereum can break above the $3,350–$3,400 resistance zone, which previously acted as a breakdown area. A sustained move through this level could reopen the path toward $3,600–$3,700, a former distribution area. Failure to reclaim this zone could lead to extended sideways trading and another test of lower support.

Grayscale has already set a precedent for Ethereum staking ETFs, with its Ethereum Staking ETF being the first to distribute staking rewards directly to shareholders according to reports. The firm distributed $0.08 per share on Jan. 6, marking a significant milestone for the Ethereum community. Other firms, including Rex Shares and 21Shares, have also launched Ethereum ETFs with staking features as noted.

Market observers are also watching for regulatory developments, particularly how the SEC will respond to the growing number of crypto ETF filings. The approval of spot Bitcoin ETFs in early 2024 marked a turning point for institutional adoption, and similar momentum could follow for Ethereum.