Matthew Sigel, VanEck’s Head of Digital Assets Research, announced on Monday that the European subsidiary of the American asset management and crypto exchange-traded products (ETP) issuing firm VanEck now enables staking for its Solana exchange-traded note (ETN) $VSOL. This allows users to contribute to the network’s security while earning passive income on their staked holdings.
$VSOL’s total assets under management (AUM) are worth $73.8 million, with its share price at $8.93 and Net Asset Value (NAV) at $8.21.
Staking refers to locking one’s crypto holdings for a specified period in a digital wallet or staking service while earning rewards when validators use the locked tokens to verify or confirm transactions on the network.
$VSOL Staking
According to an official release from the asset manager, VanEck revealed that it does not plan to lend staked customer holdings to institutional or private borrowers. Thus, staking of $VSOL is fully non-custodial, meaning asset custodians will entirely control the staked holdings.
Additionally, investors will not take any extra action to claim rewards after distribution because the network will calculate and distribute $VSOL rewards to stakers daily. The NAV calculations will reflect the rewards, updating user investment valuation by 4 p.m. daily.
Furthermore, the staking reward is not fixed. It depends on the number of Solana validators active on the network and the demand for Solana transactions at each period. Moreover, the staking yield for the Solana network ranges between 7% and 9% return on investment (ROI) per annum.
VanEck’s Crypto Stance
VanEck has built its reputation as a popular crypto asset manager, especially since it offers ETFs tied to BTC and ETH, two of the world’s largest cryptos by market capitalization.
VanEck’s Bitcoin ETF, HODL, inflowed $47.9 million in last week’s bullish ETF market, while its Ether ETF, ETHV, recorded $3.8 million in inflows.
Additionally, VanEck has become the first asset manager to apply for a Solana spot ETF in the United States as it awaits a response from the U.S. Securities and Exchange Commission (SEC).
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