VanEck Introduces Automatic Staking for Solana ETN in Europe, Managing $73M in AUM

• VanEck’s Solana ETN now includes automatic staking, allowing investors to earn rewards reinvested daily into the product’s NAV.
• A 25% staking fee is deducted before rewards are distributed, yet VanEck assures value increase for all ETN holders.
• The SOL tokens used in staking remain under the custodian’s control, ensuring security while being delegated to validator nodes.

VanEck has introduced a staking feature for its Solana exchange-traded note (ETN) in the European market, allowing investors to earn rewards automatically. The ETN, which has $73 million in assets under management (AUM), integrates staking rewards directly into the daily terminal value. 

According to Matthew Sigel, VanEck’s Head of Digital Assets Research, staking rewards will be re-invested daily and included in the net asset value (NAV) at the end of each trading day. The update aims to simplify staking for investors, allowing them to benefit without managing the process themselves.

Staking Rewards Automatically Reinvested

The newly introduced staking function in VanEck’s Solana ETN automatically distributes rewards to all investors. The rewards are reflected in the product’s daily NAV without any action required from holders. 

However, a 25% staking fee will be deducted before distributing the rewards. Despite the deduction, VanEck assures investors that the rewards will still contribute to increasing the overall value of the product. This streamlined process benefits all investors equally, regardless of when they acquired their shares in the ETN.

Security and Staking Process

VanEck employs a non-custodial approach to ensure that the SOL tokens remain under the control of the ETN’s custodian during staking. The assets are delegated to validator nodes run by external service providers but remain secure in the custodian’s cold storage. 

This method minimizes counterparty risk and ensures additional security. VanEck’s management of the staking exposure also guarantees liquidity for investors, offering peace of mind alongside daily rewards.

Continued Solana Expansion Plans

VanEck’s Solana ETN, which trades on Deutsche Börse, has seen steady growth since its launch in 2021. In addition to the new staking feature, VanEck submitted an application in July 2024 to launch the first Solana exchange-traded fund (ETF) in the U.S. 

While the ETF is still awaiting regulatory approval, the company continues expanding its offerings tied to Solana, driven by growing interest in the cryptocurrency.