VanEck has announced the launch of staking for its Solana Exchange Traded Note (ETN) in the European market, with assets under management totaling $73 million.

A New Non-Custodial Staking Model

VanEck's Head of Digital Asset Research, Mathew Siegel, announced the launch of a new staking feature for the Solana ETN. The staking rewards will be included in the End-of-Day Net Asset Value (NAV), providing daily liquidity for investors. The staking process is entirely non-custodial, meaning owners retain full control over their staked SOL tokens throughout the process.

How Staking Works for the Solana ETN

The staking process begins with the delegation of Solana tokens held by the ETN. Managed by an external staking provider, the validator earns inflationary rewards, MEV rewards, and block rewards on an epoch-by-epoch basis. Control of the delegated SOL remains with the custodian, and the assets are never removed from storage. Once rewards are accrued, they are reinvested daily into the ETN and reflected in its overall performance.

VanEck's Plans for Solana ETF in the U.S.

VanEck remains committed to launching a Solana exchange-traded fund (ETF) in the U.S. despite the current regulatory landscape. Mathew Siegel previously asserted the company's intent to work with exchange partners to advocate for its position with the regulators.

The launch of staking for Solana ETN marks a significant step for VanEck in providing investors with additional opportunities in the European market while maintaining its commitment to development in the U.S.