Solana is now about to get flooded with massive liquidity as staking options for its exchange-traded note (ETN) become available in Europe.
VanEck, a leading digital asset manager, has introduced staking options for its Solana exchange-traded note (ETN) in the European market.
Matthew Sigel, the Head of Digital Assets Research at VanEck, shared this announcement Monday on X.
According to Sigel, the staking rewards for the VanEck Solana ETN (VSOL) will be accrued and reinvested on a daily basis.
These rewards will automatically be reflected in the product’s daily net asset value (NAV), allowing investors to benefit from this new feature without needing to manage the staking process themselves.
Sigel noted that VanEck will handle the staking exposure for the Solana ETP to ensure daily liquidity.
VSOL, which is fully collateralized and stored with a regulated crypto custodian, was incorporated in Liechtenstein and officially began trading on the Deutsche Börse, Europe’s leading stock exchange, in September 2021.
As of October 18, 2024, VSOL had total assets under management (AUM) of $73.8 million, with its share priced at €8.229 ($8.93), while the NAV stood at $8.21.
With the new staking feature, VSOL investors can earn passive rewards without any additional effort.
VanEck clarified that the staked SOL will be fully managed by its custodian, reducing the risk of lending.
The custodian will delegate the SOL tokens to a Solana validator, but the tokens will remain in cold storage for security.
Notably, the staking rewards will be included in each investor’s coin entitlement and distributed equally, regardless of when the product was purchased.
However, VanEck will deduct a 25% staking fee before distributing the rewards, which will then be added to VSOL’s end-of-day NAV by 4 p.m. CET.
This staking feature is currently available only to European users.
VanEck is recognized as a major player in the digital asset management sector, including in the United States, where it offers exchange-traded funds (ETFs) linked to Bitcoin and Ethereum.
The company is also working on launching a similar product for Solana.
Previously, VanEck submitted the first-ever Solana ETF application to the SEC, which has yet to decide on its approval.
Industry experts, including Bloomberg’s ETF analyst Eric Balchunas, believe that a Solana ETF may not receive approval until there is a change in government.
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Also Read: Analyst Now Predicts A Massive Solana Rally To $4,500
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