VanEck, a leading asset management company, announced the successful activation of the staking feature for the Solana ETN launched in the European market.

Innovation in European Market

The Solana ETN, with $73 million in assets under management, now includes staking rewards directly into token equity and reflects them in the daily final value. This digital exchange-traded product is based in Liechtenstein and is designed to track the price of Solana (SOL).

Features and Benefits of the New Function

Staking rewards are 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, highlighted the advantages of Solana's shorter staking periods, which simplify implementation compared to Ethereum ETPs.

VanEck will manage staking risk using an in-house dynamic risk model to ensure daily liquidity.Mathew Sigel

Regulatory Aspects and Security

Compared to the United States, European regulations are more flexible regarding staking features in exchange-traded products. VanEck complies with regulatory requirements by using physical SOL held by the ETN to stake through instructing the custodian to delegate the SOL to a validator, ensuring assets are securely stored in cold storage.

The activation of staking for Solana ETN reflects VanEck's commitment to adopting new technologies and adapting to market demands while ensuring security and compliance with regulatory standards.