Leading asset management company VanEck has announced a significant step with a new feature for its Exchange-Traded Note (ETN) based on Solana, allowing investors in Europe to automate staking rewards.

Benefits of Staking in Solana ETN

The integration of staking features in VanEck's ETN offers significant benefits to investors. Solana's Delegated Proof-of-Stake (DPoS) mechanism requires validators to verify transactions and create new blocks. Investors who delegate their SOL tokens will receive staking rewards automatically calculated and accumulated into the ETN's equity. These rewards are reflected in the daily net asset value (NAV) of the product. Matthew Sigel, Head of Digital Asset Research at VanEck, notes this feature aims to enhance efficiency and convenience for investors.

Security and Non-Custodial Approach

VanEck employs a non-custodial model wherein assets remain under the supervision of a regulated custodian, avoiding third-party risk. This approach ensures that daily liquidity is maintained and staking is managed securely amidst market volatility. Siegel emphasizes VanEck's strategy is to bolster investor security in the volatile crypto market.

Price Developments of Solana (SOL)

Following the announcement, Solana (SOL) is valued at approximately $166.58, marking a 6.85% increase over the past week, although a slight decline occurred due to the recent Bitcoin price drop. VanEck remains confident that the new staking features will add value to investors regardless of market volatility. In addition, VanEck Solana ETN offers a management fee of only 1.5% per annum and relieves investors of the need for self-management of keys or digital asset security. Siegel highlights that VanEck provides a safe way to invest in Solana.

VanEck's new automated staking feature integrated into the Solana ETN provides enhanced security and convenience for investors interested in crypto investments.