VanEck has made staking available on its Solana exchange-traded note (ETN) in the European market.
VanEck has made staking available on its Solana exchange-traded note (ETN) in the European market. The news, which came via an announcement on Oct. 21 from Matthew Sigel, Head of Digital Assets Research at VanEck, represents yet another first in the world of digital asset investment.
The ETN, listed under the ticker VSOL on Deutsche Börse, will automatically pack staking rewards into its net asset value every day, giving investors passive income without technically staking themselves. This becomes possible through the delegated-proof-of-stake mechanism whereby the network's validators are responsible for processing transactions and creating new blocks in return for rewards.
VanEck's version keeps the concept non-custodial, hence secure for assets as it won’t expose them to lending risks. The company will manage staking exposure with the aim of keeping maximum liquidity on a daily basis. The rewards are distributed to all investors in proportion, without influence from the time of entry of each investor. A 25% staking fee would be deducted before adding the daily rewards to VSOL's NAV, computed by noon UTC.
The Liechtenstein-based ETN, launched in September 2021, has continued trading at €8.229 ($8.93), on Oct. 18, 2024. It remains fully redeemable, therefore offering the features of a classic exchange-traded product with additional value created by cryptocurrency staking.
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