Key Highlights
VanEck has enhanced its Solana Exchange Traded Note (ETN) in Europe by introducing automatic staking functionality, making it easier for investors to earn rewards. The non-custodial staking technique provides security by keeping delegated SOL in cold storage.
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VanEck has introduced new features to its Solana ETN in Europe, allowing for automatic staking and simplifying the process for investors to earn and access their staking rewards.
When investors buy the VanEck Solana ETN, they are automatically enrolled in the staking program, with rewards calculated and distributed daily after a 25% staking fee is deducted.
Matthew Sigel, who leads Digital Research at VanEck, commented on the staking structure, highlighting the benefits of a non-custodial method:
“We leverage the physical SOL managed by the ETN for staking by directing the custodian to delegate the SOL to a validator. Validator operations are overseen by the staking provider, while the delegated SOL remains under the control of the custodian in cold storage.”
This method allows for external management of staking activities, while still ensuring that control over the staked Solana tokens is retained by the custodian, minimizing risks related to third parties and enhancing investor capital security.
Addressing questions about liquidity with the new staking feature, Sigel explained VanEck’s strategy.
“We employ an internal dynamic risk model to guarantee that we can meet daily redemption needs. Managing this is actually simpler with SOL compared to ETH ETP because of SOL’s shorter epoch durations.”
VanEck’s system supports daily reward accumulation and reinvestment, which is reflected in the ETN’s net asset value (NAV) at the end of each trading day. This framework aims to provide transparency and predictability, thereby enhancing stability in investor returns.
In addition to its activities in Europe, VanEck is keen on advancing its footprint in the cryptocurrency space, as demonstrated by its recent application to launch the first Solana ETF in the United States.
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