Morgan Stanley has filed amended S-1 registration statements with the SEC for spot Solana and spot Ethereum exchange-traded trusts. The filings designate BNY Mellon and Coinbase Custody as joint custodians, set a 0.14% sponsor fee, reserve NYSE Arca tickers MSOL and MSSE, and include provisions allowing both trusts to participate in staking of underlying assets.
For Armada's crypto desk, SOL and ETH are core accepted collateral. The inclusion of staking provisions in a major TradFi product creates a market precedent where custodied ETH and SOL generate yield, which institutional counterparties may expect Armada to match or at minimum accommodate. Armada's no-rehypothecation policy must be reviewed to ensure staking of client collateral is explicitly addressed, as staking involves delegation of assets to validators and could be interpreted as a form of collateral reuse.