VanEck Launches Staking for $73M Solana ETN in Europe

VanEck has launched staking for its Solana Exchange Traded Note (ETN) in Europe, which currently manages assets totaling $73 million.

The Solana ETN, trading under the ticker VSOL, will now allow investors to earn staking rewards that will be accrued and reinvested on a daily basis.

A Non-Custodial Staking Framework

This announcement was made by Mathew Siegel, VanEck’s Head of Digital Asset Research, in an October 21 post on X. He stated that the rewards will contribute to the End-of-Day Net Asset Value (NAV) of the ETN, allowing investors to retain daily liquidity.

An attached document outlines that the staking process for the Solana ETN is entirely non-custodial, meaning that asset owners have full control over their staked SOL tokens throughout the entire process.

This approach is designed to reduce risk by avoiding exposure of the assets to lending practices typically linked with traditional staking methods.

According to the company’s communications, investors do not need to undertake any actions in the staking process, as all rewards they accumulate will be automatically added to the token equity of the ETN.

The rewards will also be distributed evenly among all investors, irrespective of whether they purchased the ETN recently or have been holding it longer. However, VanEck will deduct a 25% staking fee from the accrued rewards before they are distributed.

Understanding Staking for the Solana ETN

The staking process starts with the delegation of Solana tokens owned by the ETN. An external staking provider maintains it, allowing the validator to earn inflationary rewards, Maximum Extractable Value (MEV) rewards, and block rewards on an epoch basis. Control over the delegated SOL remains with the custodian, and the assets are never taken out of cold storage.

As rewards accumulate, they are reinvested into the ETN daily, impacting its overall performance. Based on market and network conditions, VanEck indicates it may adjust the scale of staking activities to ensure full liquidity and the option for redemption at any moment.

At the same time, the asset manager is determined to introduce a Solana exchange-traded fund (ETF) in the U.S., notwithstanding the regulatory landscape. Siegel has previously asserted that the firm will collaborate with its exchange partners to promote its stance on the offering to relevant regulators.