- VanEck’s Solana ETN now offers staking, allowing investors to earn rewards directly in daily NAV.
- Investors in VanEck’s VSOL ETN can receive 75% of staking rewards, with no extra action required.
- VanEck’s Solana staking is non-custodial, ensuring assets remain secure and controlled by a third-party custodian.
VanEck has introduced staking for its Solana-based exchange-traded note, VSOL, in Europe. The new staking feature allows investors to earn rewards, directly reflected in the ETN’s net asset value.
The staking rewards will automatically be included in the equity of the VSOL token. These rewards will then be incorporated into its daily terminal value. According to VanEck, investors will receive 75% of the staking rewards. VanEck takes a 25% fee for providing the service.
Details of the VSOL Staking Program
VanEck clarified that this staking feature requires no extra action from investors. All VSOL holders, no matter their investment timing, are eligible for the rewards. The European investors are the target audience of the ETN. As of October 18, the total assets under management amount to $73.8 million.
VSOL’s current share price is around €8.229, while its NAV is $8.21. VanEck highlighted the staking process as completely non-custodial, with the custodian maintaining control of the staked assets. This lowers the chance of asset borrowing, providing increased safety for investors.
Non-Custodial Approach Ensures Security
VanEck’s head of digital asset research explained that client funds are delegated to third-party validator nodes while remaining in the control of the custodian. This method ensures the SOL tokens remain safely stored in cold storage.
VanEck’s approach aligns with regulated traditional finance practices, which require asset segregation to protect client investments.
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He also hinted at future developments, including possible integration of liquid staking tokens like jitoSOL. For now, VanEck relies on an internal risk model to ensure liquidity for daily redemptions.
Potential Expansion of Staking Options
VanEck continues to explore new ways to enhance its staking services. The introduction of Solana staking follows a similar move earlier this year with its Ethereum-based ETN. However, the U.S. Securities and Exchange Commission has not yet approved staking rewards for the U.S based crypto ETFs.
VanEck’s staking solution for Solana represents a significant move in the European market. It provides investors with the opportunity to generate passive income while safeguarding their assets using a non-custodial method.
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