TL;DR
- VanEck has launched a Solana ETN in Europe, now including the automatic staking feature.
- The managed assets reach $73 million, and the rewards will be automatically added to the value of the SOL token.
- The non-custodial approach ensures that the tokens remain under the control of the custodian, reducing counterparty risks.
VanEck has announced that its exchange-traded note (ETN) linked to Solana, recently launched in Europe, now includes the automatic staking feature.
This new service allows investors to generate rewards that will be directly added to the value of the SOL token within the ETN, increasing its daily terminal value. Currently, the assets managed by this financial product reach $73 million, and it is gaining more relevance in the European crypto investment market day by day.
🚨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
The automatic staking has been implemented under a non-custodial approach, which means that the SOL tokens used to generate rewards remain under the control of the ETN’s custodian. This strategy aims to reduce counterparty risks that could arise if the assets were managed by third parties. In this way, the security of the tokens is reinforced, providing greater peace of mind to investors. Moreover, holders of the VanEck Solana ETN do not need to take any action to benefit from staking, as the process happens automatically upon purchasing the product.
VanEck Aims to Offer a Convenient, Profitable, and Secure Product
The rewards obtained from staking are distributed proportionally to all ETN holders, regardless of when they acquired their shares. However, the company has set an advance deduction of 25% on the rewards before distribution to investors, a fundamental feature of the service. This simplified distribution model makes VanEck’s product an attractive offer for those interested in earning passive income through staking without additional complications.
During the staking process, the SOL tokens are delegated to validator nodes operated by external staking service providers. However, the assets remain under the control of the ETN’s custodian, providing additional security in the operations.
In addition to the European launch, VanEck continues to expand its offerings linked to Solana. In July 2024, the company submitted an application to launch the first Solana exchange-traded fund (ETF) in the United States, aiming to capitalize on the strong interest in the cryptocurrency. The introduction of Web3 projects and the rise of memecoins have generated expectations about the future development of Solana in global markets