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Asset management firm VanEck revealed on October 21 that its Solana exchange-traded note (ETN), introduced in the European market, has successfully activated the staking feature.
The ETN’s assets under management (AUM) stand at $73 million. Staking rewards will be automatically integrated into the ETN’s token equity and reflected in the daily terminal value.
The staking functionality is based on Solana’s Delegated-Proof-of-Stake (DPoS) system, where validators uphold and secure the network.
VanEck Introduces Daily Staking Rewards for Solana ETP: A Significant Development for Investors?
Matthew Sigel, VanEck’s Head of Digital Assets Research, shared the announcement today on X.
VanEck EU Activates Staking for the $VSOL Solana ETP (AUM= $73M)
> Rewards Accumulate & Re-Invested Daily
> Staking Rewards Incorporated in End-of-day NAV Daily.
> VanEck to Oversee Staking Exposure to Ensure Daily Liquidity@vaneck_eupic.twitter.com/ynDZytbf5i
— matthew sigel, recovering CFA (@matthew_sigel) October 21, 2024
The rewards are automatically reflected in the product’s daily net asset value (NAV). Investors will gain from the newly introduced feature without needing to manage the process themselves. Sigel emphasized that the firm will handle the Solana ETP’s staking exposure to ensure daily liquidity.
As per the announcement, validators will handle transactions, generate new blocks, and earn rewards based on the amount of Solana (SOL) delegated to them by delegators. Delegators, in turn, receive passive rewards for their contributions to the network’s security.
VanEck’s staking strategy is non-custodial, ensuring that assets remain under the complete control of the custodian, eliminating any lending risks. Investors do not need to take any action; rewards will be automatically accounted for in the ETP coin entitlement.
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Importantly, staking rewards will be distributed uniformly to all investors, irrespective of when they acquired the ETP. The rewards are added daily to the product’s NAV, reflecting any benefits from staking activities.
However, it is important to note that VanEck will apply a 25% staking fee before distributing rewards. The adjusted rewards will be factored into VSOL’s end-of-day NAV by 4 p.m. CET. Currently, this staking feature is exclusively available to European users.
Despite the introduction of the 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 Momentum with $73.8M AUM
VanEck’s Solana Exchange-Traded Note (ETN), VSOL, established in Liechtenstein, is fully collateralized and securely held with a regulated crypto custodian. VSOL was launched in September 2021 and is traded on Europe’s leading stock exchange, Deutsche Börse.
As of October 18, 2024, VSOL had total assets under management (AUM) of $73.8 million, with its share price at €8.229 ($8.93).
VanEck is recognized as a prominent digital asset manager globally, including in the United States. The company offers exchange-traded funds (ETFs) linked to two of the largest cryptocurrencies in the world, Bitcoin and Ethereum, in the U.S.
Furthermore, VanEck is in the process of launching 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 reach a decision on VanEck’s ETF application, and several experts, including Bloomberg’s ETF analyst Eric Balchunas, believe that approval for a Solana ETF may not happen until there is a shift in government.
The post VanEck Enables Solana ETP Staking in Europe appeared first on Cryptonews.
