VanEck Solana ETN Now Offers Staking Rewards for Investors Across the European Union

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As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset landscape, I find the VanEck Solana ETN (VSOL) to be an intriguing investment opportunity. With my background in finance and technology, I appreciate the transparency and security that comes with this product. The fully collateralized nature of the ETN, coupled with its high-speed transaction capabilities and scalability for decentralized applications, makes it a compelling choice for those seeking exposure to Solana without the hassle of managing the asset directly.

Investors can seize the chance to connect with the fast-paced and scalable Solana blockchain (Solana) via the VanEck Solana Exchange Traded Note (VSOL). This digital asset is backed 100% by Solana, with the underlying SOL securely stored in cold storage at a trusted custodian under regulation.

This Exchange-Traded Note (ETN) follows the MarketVector Solana VWAP Close Index, which mirrors Solana’s performance based on its volume-weighted average price. As of October 21, 2024, the VanEck Solana ETN holds net assets worth approximately $75.88 million. Designed for institutional investors, this product offers a safe and streamlined method to invest in Solana without the need to handle or manage the asset personally.

Traded on various European stock markets like Deutsche Börse Xetra, Euronext Paris, Amsterdam, and SIX Swiss Exchange, this Exchange-Traded Note (ETN) provides a hassle-free way for investors to buy and sell during normal trading times. The ETN is based in Liechtenstein, ensuring multiple jurisdictional regulatory supervision, although it does not meet UCITS standards. A total expense ratio (TER) of 1.50% applies to investors, covering management fees and other associated costs related to the ETN’s operation.

Matthew Sigel, Head of Digital Assets Research at VanEck, announced via social media platform X that their product now provides staking rewards to European Union investors. This means that these investors can earn SOL rewards daily, which are automatically reinvested.

The VanEck Solana Exchange-Traded Note (ETN) links the staking rewards it receives straight to the product’s net asset value (NAV), causing more Solana (SOL) to be associated with each share. VanEck deducts a 25% fee from these staking rewards, much like their Ethereum ETN update in April, which incorporated staking rewards for Ethereum. However, in the United States, crypto ETFs offering staking rewards are still awaiting approval from the Securities and Exchange Commission (SEC).

Read about $VSOL staking & fees –>

EU Frens, please read the VSOL prospectus before investing –>

— matthew sigel, recovering CFA (@matthew_sigel) October 21, 2024

The VanEck Solana ETN enables investors to earn staking rewards automatically without requiring any active involvement. The staking process is fully non-custodial, ensuring that the SOL used for staking remains under the control of the custodian at all times. This eliminates any lending risks, as the SOL is never transferred out of the custodian’s cold storage, ensuring the security of the assets. Investors, regardless of when they purchased the ETN, benefit equally from the staking rewards, which are distributed proportionally after a 25% staking fee is applied.

At the close of each trading day, various rewards such as inflationary, MEV, and block rewards are accumulated to the Net Asset Value (NAV) of the ETN. These rewards are earned by delegating Solana (SOL) to a validator, while custody of the assets remains with the holder. The validator node collects these rewards on an epoch basis, which are then re-invested into the ETN, enhancing the product’s overall performance over time.

Investors maintain the freedom to buy, keep, or sell the ETN just as they would with any other exchange-traded instrument, guaranteeing its full marketability. VanEck underscores that staking does not impinge upon the ETN’s redemption value, even considering the collateral lock-up during the staking process. The annual yield from Solana staking often falls between 7% and 9%, but this rate may fluctuate due to factors such as the number of validators in the network and the demand for Solana transactions.

Staking SOL is a non-custodial process, implying that it stays securely stored offline, and there’s no lending of assets involved. Investors receive their daily net staking rewards, adjusted for a 25% staking fee, added to the Net Asset Value (NAV) calculation. While these rewards could generate extra income, they aren’t guaranteed and may vary based on shifts in the network and overall market conditions. The yield can be subject to change.

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2024-10-22 14:37