Coin World News reported that VanEck has recently launched the staking of its Solana Exchange Traded Notes (ETN) in Europe, currently managing assets worth $73 million.
Investments allow investors to gain returns without exerting additional effort. Rewards are automatically calculated into the daily value of the ETN, so investors do not need to take any action.
Matthew Sigel, Director of Digital Research at VanEck, explained this setup. They adopted a non-custodial approach, strictly controlling everything.
Sigel said, “We instruct the custodian to delegate SOL to validators, using the physical SOL held by ETN for staking.” The tokens are stored in cold storage with the custodian, reducing the risk of third-party interference. At the end of each day, the staking rewards will be added to the net asset value (NAV) of the ETN.
Liquidity, security, and dynamic risk model
VanEck does not underestimate liquidity. The company has a dynamic risk model to ensure liquidity is always available. Sigel stated, “Due to the shorter cycle of SOL, it is actually easier to meet daily redemptions with SOL than with ETH.”
A shorter trading cycle means faster transaction times, making investors’ trades smoother. Additionally, a 25% fee is charged for staking rewards before allocation, but this still leaves considerable value for investors.
VanEck’s custodian is responsible for managing the assets and ensuring everything is secure. Solana tokens are staked through validators, but reportedly kept in cold storage for maximum protection.
VanEck launched the Solana ETN in September 2021. It has received full support and regulation, with the custodian handling everything securely. The ETN is registered in Liechtenstein.
The price of VSOL is €8.229, equivalent to approximately $8.93, while the net asset value (NAV) hovers around $8.21.
VanEck has recently applied to launch the first Solana ETF in the United States, targeting the American market.
While Europe enjoys these new staking features, VanEck is working to bring the same product to the other side of the Atlantic.
