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Investment giant VanEck is bringing Solana staking rewards to investors in Europe.
Listed on the Euronext Amsterdam stock exchange, VanEck Europe's Solana exchange-traded note (ETN) will reinvest Solana rewards daily, providing a new form of passive income for its investors.
"Every day, Solana staking rewards will be reflected in the ETN’s net asset value," VanEck said about its VSOL $73.9 million product.
A 25% fee will be charged on staking rewards and the adjusted rewards will be incorporated into VSOL’s end-of-day NAV by 4 p.m. CET.
The staking process is non-custodial so assets remain under the control of the custodian, avoiding lending risks.
The ETN, which utilizes Solana's delegated proof-of-stake mechanism, remains fully redeemable but the staking feature is exclusive to Europe for now.
VanEck's head of digital assets research, Matthew Sigel, said the EU’s liquidity requirements give the firm “more room to manage redemptions effectively.”
🚨VanEck EU Enables Staking for the $VSOL Solana ETP (AUM= $73M) 🚨
— matthew sigel, recovering CFA (@matthew_sigel) October 21, 2024
> Rewards Accrue & Re-Invested Daily
> Staking Rewards Included in End-of-day NAV Daily.
> VanEck to Manage Staking Exposure to Ensure Daily Liquidity@vaneck_eu
⬇️ pic.twitter.com/ynDZytbf5i
Crypto ETFs are still awaiting staking approval and Sigel believes that a US spot Solana ETF is "inevitable."
Solana-based products have attracted $58 million, only behind Bitcoin and Ethereum based products.
Earlier this month, VanEck announced the launch of a $30 million early-stage venture capital fund dedicated to supporting innovative startups in the fintech, digital assets, and artificial intelligence sectors.
Blockhead
The VanEck Ventures fund will focus on pre-seed and seed-stage companies, providing them with the capital and expertise needed to scale their businesses.
