VanEck has introduced staking for its Solana exchange-traded note (ETN) in Europe, allowing investors to earn daily rewards that are automatically reinvested into the ETN’s net asset value (NAV).

On October 21, VanEck announced that its Solana ETN, launched in Europe, now supports staking. With an AUM of $73 million, staking rewards will be included in the ETN’s token equity and reflected in the daily value.

The staking feature uses Solana’s Delegated-Proof-of-Stake (DPoS) mechanism, where validators secure the network, and delegators earn passive rewards. Investors benefit from this without any manual effort, as rewards are automatically accounted for in the ETP coin entitlement.

Matthew Sigel, VanEck’s Head of Digital Assets Research, shared the news on X. He emphasized that the staking exposure will be managed to maintain daily liquidity, with assets staying under custodian control and no lending risks involved.

Staking rewards are distributed equally, regardless of when investors bought the ETP. A 25% staking fee is deducted, and the adjusted rewards are added to the product’s NAV daily. Currently, this feature is available only to European users, and the ETP remains fully redeemable.

VanEck’s Solana ETN, VSOL, launched in 2021 on Deutsche Börse, has grown to $73.8 million in AUM as of October 18, 2024. VSOL is fully collateralized and stored with a regulated custodian. VanEck, a global leader in digital asset management, is also working to launch a Solana ETF in the U.S., but the SEC has yet to decide on the application.