Leading digital asset manager VanEck has enabled staking options for its Solana exchange-traded note (ETN) in the European market.
Matthew Sigel, VanEck’s Head of Digital Assets Research, announced the development today in a statement shared on X. According to Sigel, the staking rewards for VanEck’s Solana ETN (VSOL) will accrue and be re-invested daily.
The rewards will automatically reflect in the product’s daily net asset value (NAV). Investors will benefit from the recently launched feature without having to manage the process themselves. Sigel emphasized that the company will manage the Solana ETP’s staking exposure to maintain daily liquidity.
🚨VanEck EU Enables Staking for the $VSOL Solana ETP (AUM= $73M) 🚨
> Rewards Accrue & Re-Invested Daily
> Staking Rewards Included in End-of-day NAV Daily.
> VanEck to Manage Staking Exposure to Ensure Daily Liquidity@vaneck_eu
⬇️ pic.twitter.com/ynDZytbf5i
— matthew sigel, recovering CFA (@matthew_sigel) October 21, 2024
VanEck Solana ETN
Incorporated in Liechtenstein, VSOL is a crypto exchange-traded product fully collateralized and stored with a regulated crypto custodian. The ETN officially commenced trading in September 2021 on Europe’s leading stock exchange, Deutsche Börse.
As of October 18, 2024, VSOL’s total assets under management (AUM) stood at $73.8 million, with its share priced at €8.229 ($8.93). In the same period, the NAV of VanEck’s Solana ETN also stood at $8.21.
With the recently introduced staking feature, VSOL investors can earn passive rewards without taking extra action on their investments.
VSOL Staking Features
The asset manager clarified that its VSOL custodian fully controls the staked SOL, eliminating potential lending risk. Per the announcement, VanEck’s VSOL custodian will only delegate the SOL tokens to a Solana validator. Despite this, the delegated SOL will remain at the custodian’s cold storage, ensuring the funds are safe.
Notably, staking rewards are included in VSOL’s coin entitlement and distributed equally, irrespective of when an investor purchased the product.
However, VanEck will deduct a staking fee of 25% before distributing the rewards. Afterward, the reward will be added to VSOL’s end-of-day NAV by 4 p.m. CET. Notably, VanEck’s VSOL staking feature is only available to European users.
VanEck Crypto Offerings
VanEck is one of the leading digital asset managers globally, including the United States. It offers exchange-traded funds (ETFs) tied to two of the world’s largest cryptocurrencies, Bitcoin and Ethereum, in the U.S.
The company is also seeking to launch a similar product for Solana. As reported earlier, VanEck was the first asset manager to submit the first-ever Solana ETF application with the SEC.
The SEC has yet to determine whether to approve VanEck’s ETF application. In the meantime, several experts, including Bloomberg’s ETF analyst Eric Balchunas, believe the SEC will not approve a Solana ETF until there is a change of government.
