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Morgan Stanley's Solana ETF Sparks a Battle Between SOL and ETH — What Exactly Happened?
In early 2026, altcoins gained strong momentum, with the quarterly altcoin index reaching the resistance level of November, and some altcoins against Bitcoin increasing by over 20%. Solana (SOL) became a major beneficiary, mainly due to Morgan Stanley submitting the “Morgan Stanley Solana ETF Trust” S-1 filing, indicating growing institutional investor interest in Solana. Although Ethereum’s ETF capital inflows were larger ($115 million compared to Solana’s $9.2 million), Solana’s on-chain activity performed better, with its total weekly locked value (TVL) increasing by 9%, while Ethereum’s only increased by 6%. The SOL/ETH ratio rose by 3%, rebounding from the key support level in 2024, indicating a strong trend. Morgan Stanley’s focus on Solana, along with similar initiatives for Ethereum, highlights the dynamic changes between the two major Layer 1 exchanges (L1) as traditional finance (TradFi) and decentralized finance (DeFi) continue to merge.