VanEck, an asset management company, has announced that staking is now an option for investors in Europe who are purchasing its Solana exchange-traded note.
All holders can stake VanEck’s Solana (SOL) ETN for the European market. VSOL currently has $73 million in assets under management.
The ETN is a digital exchange-traded product that aims to mirror Solana’s price. It was founded in Liechtenstein.
It mimics the volume-weighted average price of SOL, the asset that offers the ETN 100% collateralization in terms of both price and yield.
Staking Rewards to Accrue Daily
Asset managers are required by law to separate client funds in order to safeguard their clients’ assets. In this instance, VanEck hires custodians for real SOL tokens rather than staking customer cash via its system.
According to Mathew Sigel, head of digital asset research at VanEck, custodians assign the SOL to validator nodes, with tokens kept in cold storage.
Daily staking rewards will be accumulated, reinvested, and included in the product’s net asset value at the end of each day. VanEck will manage staking exposure to guarantee daily liquidity.
Shortly after establishing VanEck Ventures, a $30 million fund devoted to early-stage firms in the fintech, digital asset, and Artificial Intelligence sectors, VanEck expanded to include staking. The fund has already drawn four unreported investments, as was recently highlighted.
