Asset management company VanEck announced on October 21 that its Solana exchange-traded note (ETN), launched in the European market, has successfully enabled the staking function.
The ETN’s asset management scale (AUM) is $73 million. Staking rewards will be automatically included in the ETN’s token equity and reflected in the daily terminal value.
The staking feature is built on Solana’s Delegated-Proof-of-Stake (DPoS) mechanism, where validators maintain and secure the network.
VanEck Launches Daily Staking Rewards for Solana ETP: A Game Changer for Investors?
Matthew Sigel, VanEck’s Head of Digital Assets Research, announced the news today on X.
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_eupic.twitter.com/ynDZytbf5i
— matthew sigel, recovering CFA (@matthew_sigel) October 21, 2024
The rewards automatically reflect the product’s daily net asset value (NAV). Investors will benefit from the recently launched feature without having to manage the process themselves. Sigel highlighted that the company will manage the Solana ETP’s staking exposure to maintain daily liquidity.
According to the announcement, Validators will process transactions, create new blocks, and earn rewards based on the amount of Solana (SOL) delegated to them by delegators. Delegators, in turn, earn passive rewards for contributing to the network’s security.
VanEck’s approach to staking is non-custodial, ensuring that assets remain in the full control of the custodian and there are no lending risks involved. Investors are not required to take action; rewards will automatically be accounted for in the ETP coin entitlement.
Notably, staking rewards will be distributed equally to all investors, regardless of when they purchased the ETP. The rewards are added daily to the product’s NAV, reflecting any gains from staking activities.
However, it’s worth noting that VanEck will deduct a 25% staking fee before distributing rewards. The adjusted rewards will be incorporated into VSOL’s end-of-day NAV by 4 p.m. CET. Currently, this staking feature is only available to European users.
Despite the new staking process, the ETP remains fully redeemable, allowing investors to buy and sell it daily like any other exchange-traded product.
VanEck’s Solana ETN VSOL Gains Traction with $73.8M AUM
VanEck’s Solana Exchange-Traded Note (ETN), VSOL, incorporated in Liechtenstein, is fully collateralized and securely stored with a regulated crypto custodian. VSOL was launched in September 2021 and trades on Europe’s leading stock exchange, Deutsche Börse.
As of October 18, 2024, VSOL had total assets under management (AUM) of $73.8 million, and its share price was €8.229 ($8.93).
VanEck is recognized as a leading digital asset manager globally, including in the United States. The company offers exchange-traded funds (ETFs) linked to two of the world’s largest cryptocurrencies, Bitcoin and Ethereum, in the U.S.
Additionally, VanEck is working to launch a similar product for Solana. It was the first asset manager to submit a Solana ETF application to the SEC.
However, the SEC has yet to decide on VanEck’s ETF application, and several experts, including Bloomberg’s ETF analyst Eric Balchunas, believe that a Solana ETF approval may not occur until there is a change in government.
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