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VanEck Solana ETN in Europe Now Supports Staking Service

Key Points:

VanEck Solana ETN in Europe now supports automatic staking, with rewards integrated into the token equity.
The non-custodial staking approach ensures that SOL tokens used for staking remain controlled by the custodian.

VanEck has announced its Solana exchange-traded note, which was launched recently in the European market and now supports staking.

VanEck Solana ETN Launches Automatic Staking in Europe

The feature allows investors to accrue staking rewards that will be automatically added to the ETN’s SOL token equity and thus reflected in its daily terminal value. The assets under management for the VanEck Solana ETN currently stand at $73 million.

By adopting a non-custodial staking approach, the company minimizes the associated risks, ensuring that SOL tokens deployed in staking remain under the custody of the custodian holding the ETN’s assets. This, therefore, reduces any counterparty risk from third-party control of the staked assets. Investors in the VanEck Solana ETN are automatically enrolled for staking, with no need to take any direct action.

The staking rewards gained will be distributed proportionally to all VanEck Solana ETN holders, irrespective of the time of purchase of the asset. However, a 25% advance deduction is made on the reward before its distribution to the wallet holders. By default, this enrollment in staking and deduction of fees is one of the major features of the VanEck offering, making it very seamless for the investor.

During staking, the SOL tokens held by the VanEck Solana ETN are delegated to validator nodes operated by external staking service providers. At this point, though, the SOL tokens themselves continue to remain under the full control of the custodian, which further secures assets.

VanEck Files for First U.S. Solana ETF Amid Growing Market Interest

Besides, VanEck has been at the frontline in other segments related to crypto investment. The company is among the prominent filers of spot Bitcoin ETFs. In July, the company filed for the first Solana exchange-traded fund (ETF) in the United States.

The recent interest in Solana, catalyzed by the launch of Web3 projects and meme coins, has created a feeling that it could be a matter of time before the introduction of the Solana ETF.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.