For decades, financial products have been designed and distributed through centralized institutions such as banks, brokerages, insurance companies, and payment processors. While these institutions have played a vital role in global economic growth, they often operate within systems that can be slow, costly, exclusive, and opaque.

Decentralized Finance (DeFi) is challenging this traditional model by introducing an open, programmable, and transparent financial ecosystem powered by blockchain technology. Rather than relying on intermediaries, DeFi enables financial services to be delivered through smart contracts that execute automatically according to predefined rules.

This raises an important question: Can DeFi build better financial products than traditional finance?

The answer depends on how we define “better.” If accessibility, transparency, efficiency, and innovation are the criteria, DeFi has already demonstrated significant advantages. However, challenges remain before it can fully replace traditional financial systems.

What Makes a Financial Product “Better”?

A high-quality financial product should ideally possess several characteristics:

• Accessibility for a broad range of users
• Low costs and efficient execution
• Transparency and trustworthiness
• Security and reliability
• Flexibility to meet diverse user needs
• Innovation that creates new opportunities

Traditional financial institutions often struggle to optimize all of these factors simultaneously because they operate within complex regulatory frameworks and legacy infrastructure.

DeFi offers a different approach.

DeFi’s Key Advantage: Programmability

One of the most transformative features of DeFi is that financial products become programmable.

Smart contracts allow developers to create financial services that automatically execute predefined actions without requiring manual approval from banks or financial institutions.

Examples include:

• Automated lending and borrowing platforms
• Decentralized exchanges
• Yield-generating savings products
• Synthetic assets
• Prediction markets
• Insurance protocols

Because these products are built from code, they can evolve faster than traditional financial offerings and often introduce entirely new financial mechanisms.

Greater Accessibility and Financial Inclusion

Traditional finance excludes billions of people worldwide due to geographic, economic, or bureaucratic barriers.

Opening a bank account may require:

• Government-issued identification
• Minimum deposits
• Credit history
• Access to banking infrastructure

DeFi significantly lowers these barriers.

Anyone with:

• An internet connection
• A crypto wallet
• Digital assets

can access a wide range of financial services.

This accessibility creates opportunities for individuals in underserved regions to participate in global financial markets without needing permission from centralized institutions.

In many cases, DeFi products are available 24 hours a day, seven days a week, regardless of location.

Transparency Creates Trust

Traditional financial systems often operate behind closed doors.

Users rarely have complete visibility into:

• How funds are managed
• Risk exposure
• Liquidity positions
• Operational processes

DeFi operates differently.

Transactions, smart contracts, and protocol reserves are generally visible on public blockchains.

Users can verify:

• Total value locked (TVL)
• Lending activity
• Liquidity pool balances
• Protocol revenue
• Governance decisions

This transparency reduces information asymmetry and allows participants to make more informed decisions.

Lower Costs Through Automation

Financial intermediaries add value, but they also add costs.

Banks, payment processors, clearing houses, brokers, and custodians each introduce fees and operational overhead.

DeFi replaces many of these functions with automated smart contracts.

Potential benefits include:

• Reduced transaction costs
• Faster settlement times
• Lower operational expenses
• Fewer intermediaries

For example, cross-border transfers that may take days in traditional finance can often be completed within minutes through blockchain-based systems.

Innovation Through Composability

A unique feature of DeFi is composability.

Developers often describe DeFi as “money legos” because protocols can interact with one another.

A single application can combine:

• Lending protocols
• Decentralized exchanges
• Stablecoins
• Yield strategies
• Insurance solutions

This modular architecture accelerates innovation and enables developers to create entirely new financial products by integrating existing components.

Traditional finance generally lacks this level of interoperability and openness.

Better Yield Opportunities

DeFi has introduced new ways for users to earn returns on digital assets.

Examples include:

Lending

Users lend assets to borrowers and earn interest.

Liquidity Provision

Participants provide liquidity to decentralized exchanges and receive a portion of trading fees.

Staking

Users secure blockchain networks and earn rewards.

Yield Aggregation

Protocols automatically optimize capital allocation across multiple opportunities.

These mechanisms create a more competitive environment where capital can flow efficiently toward productive uses.

Personalized Financial Products

Artificial intelligence and DeFi are increasingly converging.

Future DeFi products may offer:

• Personalized lending rates
• Automated portfolio management
• AI-powered risk analysis
• Dynamic yield optimization
• Autonomous investment strategies

Because DeFi systems are programmable and open-source, customization can occur at a much greater scale than traditional finance.

This could lead to financial products tailored to individual needs rather than one-size-fits-all offerings.

Challenges That Still Need to Be Solved

Despite its advantages, DeFi is not without limitations.

Smart Contract Risk

Bugs or vulnerabilities can lead to significant financial losses.

Regulatory Uncertainty

Many jurisdictions are still developing frameworks for decentralized finance.

User Experience

Managing wallets, private keys, and blockchain transactions can be intimidating for newcomers.

Market Volatility

Crypto asset prices can fluctuate dramatically, creating additional risk.

Liquidity Fragmentation

Assets and liquidity are often spread across multiple blockchains and protocols.

Addressing these challenges will be essential for mainstream adoption.

The Future of Financial Products

Rather than completely replacing traditional finance, DeFi may evolve alongside it.

A hybrid future could emerge where:

• Banks integrate blockchain infrastructure
• Traditional assets become tokenized
• DeFi protocols provide backend financial services
• AI agents automate financial decision-making
• Global financial markets operate continuously

In this scenario, users benefit from both the security and regulatory protections of traditional finance and the efficiency and innovation of decentralized systems.

Conclusion

DeFi has already proven that financial products can be more transparent, accessible, programmable, and innovative than many traditional alternatives. Through smart contracts, open networks, and composable infrastructure, DeFi enables entirely new forms of lending, trading, investing, and wealth creation.

However, building better financial products is not solely about technology. Security, usability, regulation, and trust remain critical factors that DeFi must continue to improve.

The most likely outcome is not a world in which DeFi replaces traditional finance, but one in which decentralized technologies become a foundational layer of the global financial system. As the industry matures, DeFi has the potential to create financial products that are not only more efficient but also more inclusive and adaptable to the needs of a digital-first world.

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Key Takeaways

• Altura has initiated the shutdown of its USDT stablecoin vault following more than $8.5 million in redemptions within a 24-hour period
• The vault’s total value locked had reached $39 million on HyperEVM prior to the mass withdrawal event
• Main Street’s msUSD stablecoin plummeted more than 70% from its peg following Accountable’s termination of verification services
• While Altura utilized Accountable as a verification partner, it maintained no direct financial ties to msUSD
• Altura’s CEO Ranveer Arora attributed the withdrawal spike to market panic and false information spreading online

The weekend of June 20-21 witnessed Main Street’s msUSD stablecoin plunge by over 70% from its dollar peg. The dramatic collapse followed Accountable’s sudden decision to terminate its proof-of-solvency services, citing Main Street’s failure to satisfy its verification requirements.

Accountable functions as a third-party verification mechanism that validates whether a protocol’s asset reserves align with its outstanding obligations. Its withdrawal triggered an immediate loss of investor confidence across connected platforms.

Altura had contracted with Accountable for the same verification services. Despite maintaining no financial exposure to msUSD or any of Main Street’s investment strategies, depositors rushed to withdraw funds without seeking clarification.

22% of Total Value Locked Vanished in 24 Hours

Within a single day, depositors pulled more than $8.5 million in USDT from Altura’s vault. This represented approximately 22% of the platform’s total locked value disappearing virtually overnight.

The vault operated on the ERC-4626 standard architecture. Depositors contributed USDT in exchange for proportional vault shares. Altura then allocated these assets across various strategies including funding-rate arbitrage operations, market-making activities, and real-world asset investments.

Withdrawal mechanisms offered depositors flexibility. They could choose immediate redemption with a 0.1% processing fee, or opt for epoch-based withdrawals without any charges.

On June 21, CEO Ranveer Arora announced via X that Altura would begin shutting down the vault. He emphasized that this proactive measure aimed to safeguard depositor assets and facilitate orderly redemptions, preventing a full-scale bank run situation.

“Our priority remains the protection of user capital and ensuring all redemptions are completed in a fair, transparent, and efficient manner,” Arora wrote.

CEO Challenges Spread of False Information

Arora voiced his disappointment regarding what he characterized as baseless rumors fueling user panic. He maintained that Altura has consistently prioritized transparency in its operations, and that the withdrawal surge resulted from speculation rather than substantiated concerns.

Prior to Arora’s personal statement, Altura’s official channels had already released a clarification confirming the protocol held zero direct exposure to Main Street or its msUSD stablecoin.

“Our HyperEVM lending vault, the associated USDT/AVLT market, and borrowers utilizing our Ethereum vault remain unaffected,” the protocol stated.

Altura notified all counterparties and business partners about the shutdown decision. The platform commenced liquidating positions across centralized exchanges, private credit arrangements, and real-world asset portfolios. According to company communications, certain positions may require extended timeframes for complete redemption.

Altura’s remaining product offerings, including its HyperEVM lending facility and Ethereum vault, continue functioning without disruption and were excluded from the wind-down process.

The Accountable incident highlighted a critical infrastructure weakness. Platforms depending on a single external entity for solvency attestation face concentrated risk exposure that can spark depositor panic even when their financial position remains fundamentally secure.

Key Highlights

• XRP maintained trading activity around $1.14 during June 21–22, staying within the $1.10–$1.30 corridor
• Support at $1.10 held firm following a temporary decline to $1.12 accompanied by elevated trading volume
• Exchange-held XRP supply dropped to approximately 1.6 billion tokens, marking the lowest level in seven years
• Investment products tied to XRP attracted roughly $10.66 million in net capital during the weekly period
• Ripple advanced RLUSD integration through Mastercard infrastructure, African payment corridors, and AI-powered transaction systems

Throughout much of June 2026, XRP has exhibited constrained price movement, oscillating between $1.10 and $1.30. On June 21, the digital asset was valued at approximately $1.14, reflecting a modest 24-hour decline of -0.34%.

Daily trading volume registered around $872 million, while XRP’s total market capitalization remained near $70.97 billion. This valuation secured its position as the sixth-largest cryptocurrency by market cap.

The monthly perspective reveals more volatility. XRP has declined over 16% across the 30-day timeframe, despite recent evidence of demand at critical price thresholds.

On June 22, XRP experienced a brief downturn to approximately $1.12 during elevated trading activity. Near 21:00 UTC, transaction volume spiked to 85.8 million XRP, driving the asset to an intraday low around $1.1213.

Buyers responded rapidly to the dip. XRP rebounded toward $1.148, recovering nearly 80% of the session’s losses in a matter of hours.

The recovery encountered resistance between $1.147 and $1.149, establishing this zone as a near-term ceiling. The established range of $1.10 to $1.30 continues to define the current market structure.

Cryptocurrency analyst EGRAG CRYPTO shared technical analysis on X, characterizing the two-month price formation as “E is the battlefield.” The commentary emphasized that sustained defense of current levels is necessary before any meaningful upward movement can develop. EGRAG’s long-term cycle projections include targets ranging from $9.50 to $17.23, with $13 highlighted as a key milestone — though these levels remain distant while XRP trades beneath $1.20.

Developments in the Ripple Ecosystem

Ripple has maintained momentum across its product development and strategic partnership initiatives. The company extended RLUSD stablecoin integration into additional payment infrastructure and participated in Flutterwave’s Series E funding round to facilitate stablecoin adoption across African markets.

Ripple collaborated with Bitso on MXNB, a peso-denominated stablecoin operating on the XRP Ledger. Additionally, RLUSD achieved integration with Mastercard’s stablecoin settlement infrastructure.

The XRP Ledger introduced an AI Starter Kit designed to enable AI agents to execute automated transactions using XRP and RLUSD through the x402 protocol framework.

On-Chain Metrics and Investment Flows

XRP tokens held on centralized exchanges declined to approximately 1.6 billion — representing a seven-year low and roughly a 50% reduction from October 2025 levels. Reduced exchange-held supply can amplify price volatility when buying pressure emerges.

Institutional product flows remained constructive. XRP products generated approximately $10.66 million in net inflows during the week concluded June 18. Total cumulative inflows have now approached $1.45 billion.

Conversely, large holders distributed over 30 million XRP across a five-day window, while on-chain activity metrics softened during the corresponding period.

The CLARITY Act, legislation designed to establish clearer regulatory definitions for digital commodities, has advanced through committee stages and now awaits Senate floor consideration, requiring 60 votes for passage.

Exchange-held XRP reserves registered at approximately 1.6 billion tokens according to the latest available data, marking the lowest level recorded in seven years.

Following a period of heightened volatility in early June, investor attention in Ethereum has once again shifted towards institutional demand and the development of the spot ETF market in the United States. The funds launched last year continue to serve as one of the key channels for capital inflows into digital assets, while their daily flow statistics remain an important indicator of sentiment among major market participants. Expectations regarding the future direction of Federal Reserve monetary policy may also influence Ethereum’s price dynamics. Changes in interest-rate projections traditionally affect investors’ appetite for risk assets, including the cryptocurrency market.

Technical Picture

On the four-hour chart of ETH/USD, a corrective recovery can be observed from the June low, followed by the formation of a local high near the $1,838 resistance level. After reaching this area, buyers lost momentum and the price moved below the ascending trendline. The attempted trend break currently appears unconvincing and has so far been limited to a single bearish candle on 18 June, the impact of which was subsequently offset by the following candles.

Should selling pressure persist, the $1,670 area may come into focus for market participants. If the asset manages to establish itself above the lower boundary of the profile at $1,713 and continues its recovery within the current profile, the primary target could be the POC zone at $1,780–$1,785, followed by the upper boundary of the profile at $1,808. If the current profile density is overcome, the red resistance level may gain further significance. The RSI + MAs indicator shows readings of 46, 50 and 50. The main oscillator line and both moving averages remain in the middle of the neutrality zone, suggesting that the instrument currently has no clear directional bias.

Key Takeaways

Ethereum’s technical picture remains neutral, with RSI + MAs showing no signs of a clear directional impulse. In the coming weeks, additional volatility may be driven by capital flows into spot Ethereum ETFs and by changing expectations regarding the Federal Reserve’s next policy moves.

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Bitcoin price traded near $64,000 on Monday, even as Asian equities and technology shares rose after fresh progress in U.S.-Iran talks. 

According to crypto.news data, Bitcoin traded at $64,188 at press time, with a 24-hour range between $63,232 and $64,543.

The move left Bitcoin down about 2% on the week and still below the levels it held at the start of June. The price action looked stable, but not strong. Buyers defended the lower end of the range, yet BTC failed to match the risk-on move seen across parts of Asia.

Bitcoin fails to rally despite macro relief

The macro backdrop improved after Qatar and Pakistan said the U.S. and Iran had agreed on a roadmap toward a final peace deal within 60 days. Market reports showed Asian stocks rising, with technology names leading gains, while Brent crude fell below $80 as the oil risk premium eased.

That shift would normally help risk assets. Lower oil can reduce inflation pressure and support the case for easier liquidity. Bitcoin, however, stayed soft, showing that traders are still treating crypto as a weaker part of the risk trade.

The broader market was mixed. Solana held firmer near $74, while Tron added modest weekly gains. Ethereum traded near $1,733 and stayed roughly flat. Larger losses showed up in BNB, XRP and Dogecoin, while HYPE cooled after a strong early-June run.

ETF outflows keep demand weak

Spot Bitcoin ETF flows remain a key pressure point. SoSoValue data showed U.S. spot Bitcoin ETFs recorded about $227 million in net outflows from June 14 to June 18, marking the sixth straight week of withdrawals.

Those outflows do not guarantee a deeper price drop, but they remove a steady source of demand. Earlier parts of the cycle relied heavily on ETF buying and corporate treasury flows. With those flows weaker, BTC needs more spot demand before a move above resistance looks durable.

As crypto.news earlier reported, Bitcoin ETFs also saw a record $6.35 billion net outflow across the latest 30-day window. That keeps attention on whether withdrawals slow enough to let BTC rebuild momentum.

Analysts split on next Bitcoin move

Crypto Lens gave one of the more bearish views, saying Bitcoin is “perfectly mirroring the 2022 Bear Market pattern.” The analyst warned that BTC could move from “$64K → $66K → $53K → $48K” if the current relief bounce fails.

EGRAG Crypto took a longer-cycle view. The analyst said a bearish cross between the 21 EMA and 55 EMA on the two-week chart has historically marked a cycle-bottom window. He placed a possible macro bottom zone near “$53K–$55K” around September to November 2026 if history repeats.

Those calls remain projections, not confirmed outcomes. Bitcoin would first need to lose nearby support before deeper targets become active. The key downside levels remain $62,000, $60,000 and the June low near $59,100. A break below those levels would bring $55,000 and then the $53,000-$55,000 zone into focus.

On the upside, BTC needs to reclaim $64,500 and then $67,000 with stronger volume. A clean close above $67,000 would weaken the bearish case and open room toward $70,000 to $73,000. Until then, the market remains range-bound.

Bitcoin outlook depends on flows and geopolitics

The near-term Bitcoin price analysis remains balanced but cautious. The macro story improved, oil eased and equity markets found support, yet crypto did not fully follow. That gap suggests investors are still waiting for stronger evidence before adding risk.

Meanwhile, the next test is whether the U.S.-Iran roadmap holds and whether energy prices stay below stress levels. If the peace track continues, Bitcoin could benefit from calmer inflation expectations. If talks stumble, oil could rise again and pressure risk assets.

ETF flows may matter even more. A seventh week of outflows would reinforce the view that institutional demand has not returned. Slower withdrawals or fresh inflows would give buyers a better setup.

For now, Bitcoin is holding the range rather than breaking it. The $62,000 area remains the line bulls need to defend. The $67,000 area remains the level they need to reclaim. Until one side wins, BTC may keep drifting near $64,000 while traders wait for a stronger signal. That leaves the market sensitive to daily headlines, fund-flow data and any break of the short-term technical range. Volatility could rise quickly if leverage builds near support or resistance.

Key Takeaways

• Andy Burnham secured Makerfield constituency on June 18 with 54.8% of votes, positioning himself for Labour party leadership
• Prime Minister Keir Starmer anticipated to reveal resignation timeline on June 22, 2026
• Burnham has publicly expressed strong support for cryptocurrency, telling Web3 entrepreneurs he is fully committed to digital assets
• Current government implemented prohibition on cryptocurrency political donations in March 2026
• Over $11 million wagered on Polymarket regarding UK leadership transition, with Burnham leading predictions

By-elections rarely trigger immediate shifts in national governance. This particular contest may prove exceptional.

Andy Burnham, serving as Greater Manchester’s Mayor, captured the Makerfield parliamentary seat on June 18 with a commanding 54.8% majority. His margin over Reform UK exceeded 9,200 votes, with participation reaching nearly 59%—significantly higher than typical by-election engagement levels.

This electoral success eliminated the final procedural obstacle preventing a Labour leadership campaign. Almost immediately, speculation emerged that Prime Minister Keir Starmer was considering his position. While his office dismissed suggestions of an immediate departure, reports indicate cabinet members, union representatives, and party financiers have begun discussing transition arrangements.

Current expectations point toward Starmer announcing a departure schedule on June 22, 2026.

Implications for the Digital Asset Sector

The potential leadership change carries significant ramifications for the digital assets sector.

Starmer’s administration enacted a provisional prohibition on cryptocurrency contributions to political organizations in March 2026. This decision stemmed from recommendations in the independent Rycroft Review, which identified cryptocurrency’s pseudonymous nature as a potential conduit for foreign interference in British electoral politics.

Burnham has articulated a markedly different position. Addressing approximately 100 Web3 entrepreneurs at a Stand With Crypto gathering, he declared himself completely committed to the technology. He has consistently positioned Manchester as an emerging center for Web3 development, connecting this vision to the city’s manufacturing heritage.

Should Burnham assume the Prime Minister role, reconsideration of the cryptocurrency donation restriction appears probable. His tenure as Manchester’s mayor demonstrates consistent support for nascent technologies as economic catalysts.

Financial Markets Respond to Political Developments

Prediction platforms have registered rapid movement. Polymarket, the cryptocurrency-based forecasting platform, has seen over $11 million in positions taken on Britain’s leadership succession, with Burnham dominating as the anticipated successor.

Additionally, more than $2 million entered contracts specifically focused on Starmer’s exit timeline.

Traditional fixed-income markets have also demonstrated sensitivity. Britain’s 10-year government bond yield climbed to approximately 4.8% on Friday. Market participants appear more focused on Burnham’s anticipated fiscal stance than his cryptocurrency positioning.

The pound sterling declined in tandem with government bonds.

Bitcoin hovered around $63,900 during this timeframe, registering less than 1% daily appreciation. The cryptocurrency has declined roughly 17% over the previous month and 38% year-to-date, trading substantially below its October peak near $126,000. The political turbulence has not prompted a defensive rotation into cryptocurrency assets.

Digital asset adoption in the UK has also contracted. Financial Conduct Authority research indicates approximately 8% of British adults currently possess digital assets, declining from 12% in the prior year.

Burnham’s parliamentary induction and potential leadership declaration this week will establish the immediate trajectory for UK cryptocurrency regulation.

Morgan Stanley has updated its filings for its Ether and Solana exchange-traded funds, revealing that it plans to charge the lowest fees among its rivals.

The company filed amended Form S-1 statements with the Securities and Exchange Commission for each ETF on Thursday, showing it plans to undercut the current market offerings and charge fees of 0.14% for each of its products.

The current lowest-fee spot Ether (ETH) ETF in the US is the Grayscale Ethereum Staking Mini ETF (ETH) at 0.15%, while Franklin Templeton’s spot Solana (SOL) ETF, the Franklin Solana ETF (SOEZ), charges the lowest fee among its competitors at 0.19%, according to Farside Investors.

It is the second time that Morgan Stanley has updated its ETF filings since it first filed for the ETFs in January, with amendments typically a signal that the SEC is close to approving the products for trading, which would make them the 11th spot Ether ETF and seventh spot Solana ETF to launch in the US.

Bloomberg ETF analyst Eric Balchunas posted to X on Friday that the fees make them “the cheapest in [the] US and [the] world.”

Source: Eric Balchunas

Low fees have been a tactic for Morgan Stanley as it looks to make a late entry into the spot crypto ETF market dominated by issuers such as BlackRock and Fidelity. Its Bitcoin (BTC) ETF, which launched in April, set its fees at 0.14%, below Grayscale’s 0.15% fee on its mini Bitcoin ETF.

Related: Grayscale HYPE ETF ‘likely imminent’ as new update shows competitive fee: Analyst

That fee likely helped Morgan Stanley’s Bitcoin fund to record a respectable first-day inflow of $30.6 million. The ETF has since seen total inflows of $331 million, surpassing ETFs from Invesco, Franklin Templeton and CoinShares, which all launched in January 2024.

Morgan Stanley’s latest filings also show that Figment, Galaxy Blockchain Infrastructure and Coinbase Canada will provide the staking services for each of the ETFs, with each fund having a 5% staking fee for the rewards earned by the product.

The Ethereum ETF, called the Morgan Stanley Ethereum Trust, will feature the ticker “MSSE,” while the Solana ETF, dubbed the Morgan Stanley Solana Trust, will trade under MSOL. 

Magazine: Does ‘Paper Bitcoin’ mean there’s an unlimited supply of BTC?

Morgan Stanley has amended its filings for spot Ether and spot Solana exchange-traded funds, setting fees it says are designed to be the lowest available in the US market for comparable products. The updates—made via amended Form S-1 statements—signal the firm is continuing to move toward an SEC decision that would allow the funds to begin trading.

According to the SEC filings lodged Thursday, Morgan Stanley plans to charge a fee of 0.14% for each ETF. If approved, the funds would expand Morgan Stanley’s presence in the fast-growing US spot crypto ETF lineup.

Key takeaways

• Morgan Stanley amended its SEC filings for both a spot Ether and a spot Solana ETF, targeting 0.14% fees.
• Farside Investors data cited in the article indicates existing lowest-fee spot products currently charge 0.15% for Ether and 0.19% for Solana.
• Amendments to Form S-1 have often been interpreted by the market as a sign of advancing SEC review and potential approval.
• Earlier, Morgan Stanley’s spot Bitcoin ETF launched with a 0.14% fee—matching its approach to undercut peers.
• Staking services for the proposed funds are set to involve Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada, with a 5% staking fee on rewards.

Fees take center stage as SEC review advances

The core detail in Morgan Stanley’s latest updates is pricing. In the amended filings for each fund, the company states it intends to charge 0.14% annually. The move is particularly notable because it would place Morgan Stanley’s products at the low end of the fee spectrum for spot crypto ETFs in the US.

As background, Farside Investors data referenced in the article shows the current lowest-fee spot Ether ETF in the US is the Grayscale Ethereum Staking Mini ETF at 0.15%. For Solana, the lowest-fee spot offering cited is Franklin Templeton’s Franklin Solana ETF (SOEZ) at 0.19%, also based on Farside Investors’ figures.

Market watchers typically treat fee positioning as a proxy for how actively an issuer expects to compete for new assets. Lower expense ratios can make a fund more appealing to long-term allocators, especially when multiple spot crypto vehicles aim to track the same underlying assets.

Spot Ether and Solana proposals: what Morgan Stanley filed

The firm submitted amended Form S-1 statements for both proposed products on Thursday, as linked in the filings. The updates are the second set of amendments since Morgan Stanley first filed for the ETFs in January.

In practice, amendments are often read by the market as progress in negotiations and technical review—particularly because they generally appear closer to the moments when an issuer moves from preliminary review toward potential approval.

While the final SEC outcome is not guaranteed, the article notes that approval would add to the already expanding shelf of spot crypto products in the US, potentially bringing Morgan Stanley’s spot Ether ETF count to the 11th and spot Solana ETF count to the 7th among similar offerings, as described in the original coverage.

The specific fund naming and trading targets outlined in the article include:

• Morgan Stanley Ethereum Trust with ticker MSSE
• Morgan Stanley Solana Trust with ticker MSOL

Why “cheap” matters: Morgan Stanley’s Bitcoin playbook

Morgan Stanley has already used low fees as a market entry strategy in spot Bitcoin. Its Bitcoin ETF, launched in April, set its fee level at 0.14%, positioned below Grayscale’s 0.15% fee on its mini Bitcoin product, as noted in the article.

That fee decision appears to have been part of the firm’s early traction. The article references Cointelegraph coverage stating the fund recorded first-day inflows of $30.6 million and that total inflows have since reached $331 million, outpacing ETFs from Invesco, Franklin Templeton, and CoinShares that launched in January 2024.

Importantly, while inflow performance can be affected by many variables beyond fees—such as distribution reach, investor base, and timing—the repetition of a 0.14% expense ratio suggests Morgan Stanley is intentionally carrying forward a “competitive cost” approach across its crypto ETF expansion.

Staking services and the 5% reward fee

Morgan Stanley’s amended filings also address operational details tied to staking. The article says the filings indicate Figment, Galaxy Blockchain Infrastructure, and Coinbase Canada will provide staking services for each of the ETFs.

Under the structure described, each fund would apply a 5% staking fee to rewards earned by the product. This matters for investors because staking-related fees can change the effective return experienced by shareholders, particularly for spot products where staking can influence yield dynamics compared with a simple spot exposure approach.

Even with a low base expense ratio, staking economics can differ from the headline management fee. Investors generally look at both the fund’s stated expense level and any additional costs associated with custody, network participation, and reward allocation.

What to watch next

With Morgan Stanley’s spot Ether and Solana ETFs moving through an active amendment cycle—and with fees positioned at the low end versus currently available rivals—the next steps for investors are to monitor SEC feedback and any further filing updates that often precede approval decisions. The open question remains whether the SEC’s review will conclude in a timeframe that brings these products to market, and how staking-related costs ultimately shape investor outcomes versus existing offerings.

Validators are entities that keep Ethereum running by locking up ether (ETH), checking transactions and earning staking rewards for doing so. Funding, in this context, means paying for the shared work Ethereum relies on, such as developer tools, security research, public infrastructure and other projects that help the network but do not always have a direct business model.

The proposal seeks to shift that burden toward validators, who earn ETH rewards for securing the network and benefit when Ethereum becomes more valuable.

It argued that validators are natural long-term stakeholders because better ecosystem funding can increase network activity, ETH burn and the value of staked ETH.

Validators could also select preferred funding recipients under the proposal. Those preferences would be combined into a ‘splitter’ contract that distributes redirected funds among chosen addresses. The design is meant to let validators “set and forget” their preferences rather than vote on every grant.

At current staking levels, the post estimated that validators receive roughly 700,000 ETH a year in rewards. A 5% to 10% redirect could send about 50,000 to 70,000 ETH a year toward ecosystem funding. That equates to about $120 million at ether’s current market prices.

The idea is likely to be controversial, however.