Why the Crypto ETF Market May Be Entering a Commodity Phase

Morgan Stanley’s proposed ethereum and solana exchange-traded funds (ETFs) would enter a market where issuers increasingly offer similar exposure to the same assets. The firm recently amended both filings with the U.S. Securities and Exchange Commission (SEC) to include a 0.14% management fee, below Grayscale’s 0.15% and Franklin Templeton’s 0.19%. The narrow spread signals intensifying price competition.

Brian Rudick, chief strategy officer at Solana treasury company Upexi and formerly head of research at crypto trading firm and liquidity provider GSR, argued that the fee matters less than what it suggests about the market’s development. On July 9, he shared on X:

“Issuers don’t compete on price until the product is close to a commodity and the fight is for share, the same compression the spot BTC ETFs went through.”

“ SOL ETF AUM already crossed $1B, led by Bitwise’s BSOL, so there is real share to fight over,” he added.

The argument places the 0.14% fee within a shift from product creation to asset gathering. Once several issuers offer similar exposure, management costs become one of the clearest points of distinction. His comparison with spot bitcoin ETFs suggests ethereum and solana products may be entering the same phase of fee compression.

Bitwise launched its solana ETF, BSOL, on NYSE Arca in October 2025, marking the first U.S.-listed vehicle to provide direct exposure to spot SOL. The fund goes beyond simple price tracking by actively staking its holdings, allowing staking rewards to contribute to fund returns after applicable expenses.

How Morgan Stanley Designed the Ethereum and Solana Trusts

The Morgan Stanley Ethereum Trust would trade on NYSE Arca under the ticker MSSE and track the Coindesk Ether Benchmark 4PM NY Settlement Rate. Alongside its proposed 0.14% fee, Morgan Stanley Investment Management intends to stake 50% to 80% of the trust’s ether under normal conditions.

BNY and Coinbase Custody would hold the ethereum trust’s assets. Staking providers and custodians would receive an aggregate 5% of staking rewards, leaving the remainder with the trust. Net rewards would be distributed monthly, but at least quarterly, though the filing does not guarantee the amount.

The Morgan Stanley Solana Trust would trade on NYSE Arca under the ticker MSOL and track the Coindesk Solana Benchmark 4PM NY Settlement Rate. It would also carry a proposed 0.14% fee. The trust may stake up to 100% of its SOL while keeping some holdings unstaked for redemptions, expenses and distributions.

BNY and Coinbase Custody would also serve as custodians for MSOL. Staking providers and custodians would receive 5% of staking rewards, leaving 95% with the trust. Net rewards would be distributed monthly, but at least quarterly, while validator block rewards and transaction fees would not accrue to shareholders.

What Morgan Stanley’s Bitcoin ETF Shows About the Strategy

Morgan Stanley has already used the same fee level in its spot bitcoin product. The Morgan Stanley Bitcoin Trust began trading under the ticker MSBT on April 8, 2026, with a 0.14% annual management fee. That undercut Blackrock’s IBIT at 0.25% and Bitwise’s spot bitcoin ETF at 0.20%.

MSBT became the first proprietary spot cryptocurrency ETF launched under the name of a major U.S. commercial bank. As of July 10, 2026, it traded at $18.47 per share and held about $364.23 million in total net assets. Its debut ranked in the top 1% of ETF launches by volume and early adoption.

The proposed ETH and SOL funds remain preliminary, and shares cannot be sold until the registration statements become effective. No firm launch dates have been announced. SEC effectiveness and subsequent asset flows would show whether Morgan Stanley’s combination of low fees, staking income and bank-backed distribution can win market share.

The cryptocurrency market dynamics have been consistent over the years, with prices fluctuating in cycles and trends. Such a pattern triggers discussions among crypto community members, particularly key opinion leaders and experts who explore researched data and historical trends to predict the future.

Notably, the evolving nature of the Bitcoin ecosystem triggers sentiments that differ from the digital asset’s early days. Experts analyzing this new phase, alongside developments in alternative cryptocurrency ecosystems, are projecting the crypto market, leaving pointers of what users should expect.

Bitcoin is a Scarce Commodity

One such expert and key opinion leader is Samson Mow, CEO of Jan3, a blockchain project that aims to accelerate hyperbitcoinization. In a recent interview, Mow highlighted the scarcity of Bitcoin that many users have yet to recognize. According to Mow, most people still don’t get what true scarcity means.

The renowned Bitcoin expert explained that there is so much demand for Bitcoin from Michael Saylor’s Strategy, ETFs, nation-states, and regular HODLers. He noted that demand is so high that most of the year’s mined $BTC supply has already been taken up multiple times over.

Mow cited a pattern among many Bitcoiners who typically postpone buying $BTC during pullbacks, expecting that the price would drop further. He emphasized that “there is no later” with Bitcoin, predicting the price will return above $100,000 soon. According to Mow, every institution on earth wants a share of the 21 million Bitcoin supply, which would make the cryptocurrency more expensive in the future.

For context, BlackRock has reportedly resumed accumulating $BTC. After recording steady outflows for approximately two weeks, the asset manager reversed course by purchasing $250 million worth of Bitcoin over the past two days. Besides direct purchases, on-chain data show several $BTC transfers from Coinbase Prime to the IBIT BlackRock wallet, valued at around $17 million to $19 million.

BlackRock’s crypto asset holdings have crossed $50.3 billion, comprising 730,440 $BTC, equivalent to $45.52 billion, and 2.752 million $ETH worth $4.79 billion. According to experts, BlackRock’s crypto accumulation pattern indicates that institutional demand for $BTC and $ETH remains unabated.

Ethereum Remains in Demand

Popular crypto influencer, identified as Tanaka on X, aligns with the growing $ETH demand philosophy. Tanaka described the propagation of settlement layers, such as the Robinhood Chain and the Arbitrum Orbit, as clear examples of how TradFi can move on-chain via L2s. He noted that these solutions create scenarios that funnel into increased demand for $ETH.

Tanaka highlighted the recent surge in meme activity on these chains, noting that the solutions go beyond that, covering real-world assets (RWAs), stock tokens, lending, and DeFi. According to Tanaka, L2 activities settle back to Ethereum, $ETH gas creates demand for using the cryptocurrency, while stock tokens, such as NVDA, AAPL, and GOOG, are going on-chain, all boosting demand for $ETH.

Meanwhile, Tanaka cited a scenario that could create more demand for Ethereum—Robinhood onboarding retail TradFi into tokenized stocks and DeFi. According to him, that would be a very positive signal for $ETH. In the meantime, Ethereum is used as the settlement layer for RWA, DeFi, and traditional financial products.

It is worth noting that developments around the Robinhood Chain are not the only factors behind $ETH’s potential demand. Tanaka noted that, despite considering it a positive catalyst, $ETH still depends on $BTC, macro, ETF flows, and Ethereum upgrades to sustain its momentum and remain relevant in the cryptocurrency ecosystem.

The Latest Meme Coin Narrative

Besides Bitcoin and Ethereum, crypto experts consider the meme coins ecosystem another relevant sector of the crypto market, despite the changing dynamics. Zippy, a key opinion leader in the meme coin sector, stated that the lifecycle of meme narratives is getting shorter with every cycle. According to him, what used to last for days or even weeks now often fades within 24 hours.

Zippy noted that most meme tokens experience sharp corrections as soon as liquidity rotates elsewhere. He explained that the new pattern does not mean the meme market is over. Instead, it signifies that capital is rotating at a much faster pace, and rather than staying with one token, the market is constantly chasing the next story.

The meme coin opinion leader noted that the new ecosystem narrative has emerged with meme waves led by ecosystems attracting fresh liquidity rather than old narratives trying to recover. He identified Robinhood as one of the leading ecosystems currently drawing attention in the meme coin sector.

However, Zippy noted that timing matters as much as conviction in the current meme ecosystem dispensation. According to him, sometimes, knowing when to exit is more valuable than knowing when to buy.

Related:Bitcoin Scarcity Gets Real as 403K $BTC Leaves Exchanges

Bitdeer Targets 10,000 Monthly Sealminer Units With New $36 Million Nevada Factory

Bitdeer is moving ahead with a major U.S. manufacturing push, breaking ground on a $36 million advanced electronics facility in Sparks, Nevada, even as bitcoin mining economics remain near historic lows.

The 187,000-square-foot plant will be the company’s first domestic manufacturing and assembly site in the U.S. It is expected to be completed by the end of 2026 and is designed to produce 10,000 Sealminer units per month.

Bitdeer said the project will create about 70 local jobs across engineering, skilled technician and support roles. The facility will expand the company’s U.S. footprint beyond mining and data centers, adding a domestic production base for its proprietary mining machines.

“Producing our advanced Sealminer units right here in Nevada reflects our long-term commitment to building capacity and nurturing the talent necessary to support our growing digital infrastructure operations in America,” remarked Paul Hanson, Chairman of Bitdeer Industrial.

Vertical Integration During a Mining Slump

The timing is notable. Bitcoin miners are still dealing with weak hashprice, a key measure of mining revenue per unit of computing power.

Spot hashprice was recently around $29.81 per PH/s/day, after touching a daily low of $27.89 on Feb. 24. March also marked a record-low monthly average of $31.27, according to industry data.

The pressure reflects several factors: the April 2024 halving, rising network hashrate, and low transaction-fee revenue. Together, they have reduced revenue for miners using the same amount of computing power.

At these levels, profitability is increasingly concentrated among operators with cheap power and newer, more efficient machines.

Bitdeer is trying to address that pressure through vertical integration. The company has been developing its own Sealminer hardware and deploying the machines across its self-mining fleet.

Catherine Guo, CEO of Bitdeer Industrial, commented that the Sparks plant reflects the company’s contribution to Nevada’s diversifying economy.

“Our commitment underscores the state’s strategic advantages, including a highly accessible and skilled workforce, robust logistics networks, and a consistently business-friendly environment,” Guo said.

U.S. Expansion Meets AI Demand

The Nevada facility will complement Bitdeer’s existing U.S. data centers and its innovation hub in San Jose, California.

The project also comes as Bitdeer expands across mining and AI infrastructure. In its May operating update, the company reported 70.2 EH/s of self-mining hashrate, 921 bitcoin mined during the month, and about $69 million of annualized recurring revenue from its AI Cloud business.

Bitdeer also said it was in advanced talks with a potential colocation tenant at its Tydal, Norway site. That follows a broader industry trend in which miners are exploring AI and high-performance computing uses for power-rich data center assets.

The facility is expected to begin contributing to Bitdeer’s manufacturing capacity as the mining hardware market becomes more selective. Weak hashprice can slow equipment demand, but it can also push well-capitalized miners to replace older machines with more efficient models.