VanEck EU Enables Staking for Its Solana ETP

Asset manager VanEck has integrated staking into its Solana Exchange Traded Notes (ETNs), available in Europe. This new feature will allow investors to earn staking rewards as part of the ETN’s structure.

For context, Exchange-Traded Notes (ETNs) are investment vehicles that track the performance of an underlying asset without directly owning the asset. Unlike other investment products, ETNs do not require investors to hold the underlying asset but instead mirror its market performance.

VanEck’s Staking Feature

VanEck’s Solana ETN is linked to the value of Solana (SOL), with the added potential for staking rewards. The staking mechanism is non-custodial, meaning the custodian retains full control over the staked SOL tokens. This helps minimize the risks associated with staking by preventing any third party from gaining control of the assets.

Investors who purchase VanEck’s Solana ETN are automatically enrolled in the staking program. Rewards from staking are integrated into the ETN’s token equity, and investors will receive their share of the rewards proportionally (regardless of when they acquired the ETN). However, a 25% fee is deducted from the staking rewards before they are distributed.

The staking process involves delegating SOL tokens to validator nodes, which external service providers manage. Despite this, the SOL tokens remain entirely under the custodian’s control, reducing the risk of additional exposure beyond the staking activity.

VanEck Liquidates Its Ether Futures ETF

Meanwhile, the latest development comes one month after the asset manager announced plans to liquidate its Ethereum futures ETF (EFUT). Before dissolving the fund, the asset manager evaluated factors such as performance, liquidity, assets under management, and investor interest.

“As the sponsor of VanEck ETFs, VanEck continuously monitors and evaluates its ETF offerings across a number of factors, including performance, liquidity, assets under management, and investor interest, among others. The decision was made to liquidate the fund based on an analysis of these factors and other operational considerations,” VanEck said.