VanEck, a leading asset management company, has announced a significant development for Solana (SOL) in Europe. The company has successfully activated the staking feature for the Solana exchange-traded note (ETN) in the European market. The ETN, which currently has $73 million in assets under management (AUM), will now include staking rewards directly in token equity and reflect them in the daily final value.
The Solana ETN, based in Liechtenstein, is a digital exchange-traded product designed to track the price of Solana (SOL). Staking rewards will be accrued and reinvested daily, allowing them to be included in the end-of-day net asset value (NAV). Mathew Sigel, VanEck’s Head of Digital Asset Research, explained that an in-house dynamic risk model will be used to manage staking risk and ensure daily liquidity. He also noted that Solana’s shorter staking periods make it easier to implement compared to Ethereum ETPs.
Sigel further highlighted that European regulations regarding staking features in exchange-traded products are more flexible than those in the United States, enabling VanEck to implement this functionality more efficiently. When asked about VanEck running its own validator node, Sigel clarified that regulatory requirements in traditional finance prohibit asset managers from holding client funds directly. As a result, VanEck uses physical SOL held by the ETN to stake, instructing the custodian to delegate the SOL to a validator. The control of the delegated SOL remains with the custodian, ensuring secure storage in cold storage.
Please note that this article does not provide investment advice.
