VanEck enables staking rewards for European Solana ETN investors

VanEck has launched staking for its Solana exchange-traded enactment (ETN) VSOL successful the European market.

Matthew Sigel, caput of integer plus probe astatine VanEck, confirmed the rollout connected Oct. 21. He noted that the caller staking enactment allows investors to gain rewards, which volition beryllium reflected successful the regular nett plus worth (NAV) of the ETN.

Sigel explained that these rewards volition beryllium automatically included successful the VSOL token’s equity and incorporated into its regular terminal value.

VSOL investors volition person 75% of the gross staking rewards, pursuing a 25% deduction for VanEck’s staking fee. This passive income diagnostic is disposable to each VSOL holders, careless of the timing of their investment, and requires nary further enactment from investors.

VSOL is simply a crypto ETN that was incorporated successful Liechtenstein for European investors. It launched successful September 2021 connected Deutsche Börse, 1 of the region’s starring banal exchanges.

As of Oct. 18, the ETN’s assets nether absorption (AUM) full $73.8 million. According to VanEck’s website, the shares are priced astatine astir €8.229 ($8.93), with the NAV lasting astatine $8.21.

Non-custodial approach

VanEck emphasized that its staking attack is afloat non-custodial. This ensures that the ETN’s custodian retains implicit power implicit the staked assets, eliminating lending risks that could perchance interaction investors.

Sigel explained that the firm’s lawsuit funds would beryllium delegated to validator nodes managed by a third-party provider. The SOL tokens held by the ETN are staked done this process, with the custodian maintaining power implicit the assets successful acold storage.

He explained:

“In regulated TradFi, plus managers can’t clasp lawsuit funds straight owed to the request for third-party segregation to support lawsuit assets. Staking lawsuit funds to asset-manager-owned infrastructure raises akin concerns.”

Meanwhile, Sigel besides hinted astatine imaginable aboriginal developments, mentioning the anticipation of utilizing liquid staking tokens (LSTs) similar jitoSOL. However, the steadfast presently relies connected an interior dynamic hazard exemplary to guarantee liquidity for regular redemptions.

The station VanEck enables staking rewards for European Solana ETN investors appeared archetypal connected CryptoSlate.