New York, Thursday, October 31, 2024 – VanEck has officially launched staking for its Solana Exchange Traded Note (ETN), trading under the ticker VSOL, in Europe, enhancing the investment product with staking rewards.
Currently, the ETN has assets under management (AUM) totaling $73 million, allowing investors to reap the benefits of staking rewards that will be accrued and reinvested daily.
The announcement was made by Mathew Siegel, VanEck’s Head of Digital Asset Research, on October 21.
He noted that the staking rewards would be reflected in the End-of-Day Net Asset Value (NAV) of the ETN, ensuring that investors maintain daily liquidity.
This non-custodial staking model allows asset owners to retain complete control over their staked SOL tokens, thus mitigating risks typically associated with traditional staking methods.
Investors will not need to take any action to participate in the staking process; rewards earned will be automatically included in the ETN’s token equity.
Distribution of the rewards will be equitable among all investors, regardless of their purchase date, although VanEck will impose a 25% staking fee on accrued rewards prior to distribution.
The staking mechanism involves delegating Solana tokens held by the ETN to an external staking provider.
Validators earn inflationary rewards, Maximum Extractable Value (MEV) rewards, and block rewards on an epoch basis. Importantly, the delegated SOL tokens remain under the custodian’s control and are never removed from cold storage.
As rewards are generated, they will be reinvested daily into the ETN, enhancing its overall performance.
VanEck also indicated that it may adjust the scale of staking activities based on market conditions to ensure that the ETN remains fully liquid and redeemable at any time.
Furthermore, the asset manager is steadfast in its pursuit of launching a Solana exchange-traded fund (ETF) in the U.S., despite the current regulatory challenges. Siegel emphasized the company’s commitment to engaging with exchange partners to advocate for its ETF offering to regulators.
