VanEck just activated staking for its Solana exchange-traded note (ETN) in Europe, and it’s now managing $73 million in assets.
Staking lets investors earn rewards without extra effort. The rewards get automatically rolled into the ETN’s daily value, so no action is required from investors.
Matthew Sigel, VanEck’s Head of Digital Research, explained the setup. They use a non-custodial approach, keeping everything under tight control.
“We use Physical SOL held by the ETN for staking by instructing the custodian to delegate SOL to a validator,” Sigel said.
The tokens stay in cold storage with the custodian, reducing the risk of third-party interference. Staking rewards get added to the ETN’s Net Asset Value (NAV) at the end of each day.
Liquidity, security, and dynamic risk models
VanEck isn’t taking liquidity lightly. The company has a dynamic risk model that ensures liquidity is always available. Sigel said, “Because of SOL’s shorter epochs, it’s actually easier to meet daily redemptions for SOL than it is for ETH.”
Shorter epochs mean quicker transaction times, which makes things run smoother for investors. Plus, a 25% fee is charged on the staking rewards before distribution, but that still leaves plenty of value on the table for investors.
Everything stays secure with VanEck’s custodian managing the assets. Solana tokens get staked through a validator, but they reportedly remain in cold storage for maximum protection.
VanEck launched the Solana ETN back in September 2021. It’s fully backed and regulated, with the custodian handling everything securely. The ETN is incorporated in Liechtenstein.
The share price for VSOL stands at €8.229, which is about $8.93, while the net asset value (NAV) is hovering around $8.21.
VanEck is also eyeing the U.S. market with its recent application to launch the first Solana ETF in the country.
While Europe enjoys these new staking features, VanEck is working hard to bring the same offerings across the Atlantic.
