VanEck Europe allows betting on its $73 million Solana ETN

VanEck has introduced participation for its Solana Exchange Traded Note (ETN) in Europe, which currently has assets under management (AUM) totaling $73 million.

The Solana ETN, which trades under the ticker VSOL, will now allow investors to benefit from staking rewards that will be accumulated and reinvested daily.

A non-custodial staking model

The announcement was made by VanEck’s head of digital asset research, Mathew Siegel, in an October 21 post on X. According to him, the rewards will be included in the net asset value ( NAV) at the end of the day of the ETN, ensuring that investors can maintain daily liquidity.

An attached document reveals that the staking process for the Solana ETN is entirely non-custodial. It means that the owner of the assets maintains full control over the staked SOL tokens throughout the process.

This strategy aims to mitigate risk by not exposing assets to lending practices commonly associated with traditional staking methods.

According to the company’s marketing communication, investors are not required to take any action in the participation process, and the rewards they earn are automatically included in the token equity of the ETN.

Rewards will also be distributed equally among investors, regardless of whether they bought the ETN recently or held it for a longer period. However, VanEck will deduct a 25% participation fee from the rewards accrued prior to distribution.

How Staking works for the Solana ETN

The staking process begins with the delegation of Solana tokens held by ETN. Maintained by an external staking provider, the validator earns inflation rewards, maximum extractable value (MEV) rewards, and block rewards on an epoch-by-epoch basis. However, control of the delegated SOL remains with the custodian, while the assets are never removed from cold storage.

Once the rewards are accumulated, they are reinvested daily in the ETN and are reflected in its overall performance. Depending on market and network conditions, VanEck says it can adjust the scale of share activity to ensure it remains fully liquid and redeemable at any time.

Meanwhile, the asset manager remains committed to launching a Solana exchange-traded fund (ETF) in the US despite the regulatory landscape. Siegel previously stated that the company will work with its exchange partners to defend its position on the offering to the relevant regulators.

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