VanEck Enhances Staking Rewards for Solanas Investment Products in Europe

CoinDesk Report:
VanEck Europe Exchange Traded Notes (ETN) Solana underwent a crucial transformation on Monday, offering Solana staking rewards to investors across the European Union.
The company, listed on the Amsterdam-based pan-European exchange, will now receive Solana rewards for its $74 million product, reinvested daily, in what is being called the VanEck Solana ETN, representing a new passive income form for fund investors.
VanEck stated that the daily Solana staking rewards will be reflected in the net asset value of the ETN. The asset manager added that with reinvestment of these rewards, Solana’s authorized expenditures will be reflected in the increased amount of SOL per share.
Regarding the staking rewards, VanEck stated that it will charge investors a 25% fee. This decision follows a similar switch in April that made Ethereum ETN staking rewards available through VanEck. In the US, staking rewards for cryptocurrency ETFs have not yet been approved by the Securities and Exchange Commission (SEC).
When VanEck filed a registration statement for a spot Solana ETF in June, the company explicitly stated that staking would not be part of its product for US investors. The company said that the “VanEck Solana Trust” would hold its Solana reserves instead of utilizing staking to generate returns, similar to the spot Ethereum ETF approved earlier this year in the US.
Due to the lack of staking reward benefits for investors, the adoption rate of spot Ethereum ETFs has been low since their launch in late July. Data from CoinGlass shows that the Ethereum spot ETF has seen a cumulative net outflow value of $140,000 among the nine products. Other products worth hundreds of millions of dollars have largely overshadowed this, especially as Grayscale’s Ethereum spot ETF has experienced an outflow of nearly $1 billion.
When it comes to inflows of digital assets tracked by CoinShares, Solana has stood out this year with coins other than Bitcoin and Ethereum. Solana-based products attracted inflows worth $58 million in 2024, followed by Litecoin and XRP with $41 million and $26 million respectively, according to CoinShares.
While VanEck initially applied for its Solana product on the Cboe BZX exchange, 21Shares followed suit a day later by filing documents involving the exchange. Last week, asset management firm Grayscale filed for a conversion that would transform a multi-asset fund into an ETF on the New York Stock Exchange, featuring exposure to Solana, Bitcoin, Ethereum, and Avalanche.
Approval in August, according to Matthew Sigel, head of digital assets research at VanEck, was a key factor in the introduction of a spot Solana ETF in Brazil. Meanwhile, analysts pointed out that the US presidential election is a major factor.
Sigel told Decrypt that the EU’s approach to ETNs provides asset managers with greater flexibility compared to the US. For example, the liquidity requirements in the region provide VanEck with “more efficient management of redemptions.”
Eric Balchunas, an analyst at Bloomberg ETFs, said that anything is possible if former President Donald Trump returns to the White House in November. On Twitter, he said that the election, as well as the prospect of a crypto-friendly regime under Trump’s leadership, are equally important to the final deadline for applications by VanEck and 21Shares in mid-March next year.
Editor: Andrew Hayward