VanEck announces European-compliant Solana ETN staking functionality

According to reports, asset management company VanEck has announced that its Solana Exchange Traded Note (ETN) launched in Europe has enabled staking. VanEck’s staking method is completely non-custodial, which means that the ETN assets custodian always has full control over the staked assets.

VanEck Europe-Compliant Solana ETN now supports staking

Per design, VanEck’s staking method does not involve lending risk. In addition, Solana ETN investors are not required to take any action, and any rewards paid will be included in the ETN’s token equity. 

Also, whether the custodian purchased ETN last year or just last week, the total staking rewards collected in the last time period shall be given equally (minus 25% staking fees).

VanEck directs validators to stake SOL by instructing custodians to use the physical SOL held by the ETN. Validator nodes are operated and managed by staking service providers, yet the delegated SOL remains under the custodian’s control.

A crypto ETN is a type of ETN that is fully secured by one (or more) crypto assets and represents a fixed amount of the underlying asset(s). Investing in an ETN tracking crypto allows investors to have exposure to actual cryptocurrencies through their usual brokers or banks. 

ETNs are different from ETFs. Crypto exchange-traded funds (ETFs) track the price performance of crypto coons by investing in a portfolio linked to their instruments. Like other such funds, crypto ETFs trade on regular stock exchanges, and investors can hold them in their standard brokerage accounts. SOL ETFs have already been put in motion.

Following this announcement, Solana (SOL) is up 2.3%, trading at $163.97 on CoinGecko. SOL’s market surge goes against today’s price movement. Bitcoin is down 2.3%, trading at $67K, while the total crypto market cap has lost 2.34% in the last 24 hours.