This non-custodial staking mechanism allows the physical SOL held by the ETN to be staked while minimizing third-party risks through cold storage.

VanEck has launched a Solana Exchange Traded Note (ETN) in Europe, now featuring automated staking that simplifies the reward accrual process for investors.

The VanEck Solana ETN, known as VSOL, offers direct exposure to Solana's performance, functioning similarly to an ETF but with distinct management characteristics.

Client funds will be delegated to validator nodes managed by a third-party provider for staking, while the custodian maintains control over the assets in cold storage.

This staking feature allows investors to diversify their yield sources by earning rewards without the need to directly manage Solana assets.

Investors will receive 75% of the gross staking rewards after a 25% fee is deducted by VanEck, with rewards distributed equally among all VSOL holders.

Staking rewards will accrue daily and be reinvested, contributing to the ETN's Net Asset Value (NAV) for transparent returns.

Currently, the staking feature is only available to European users, reflecting VanEck's strategic focus on this market.

This move to include staking follows the recent launch of VanEck Ventures, a $30 million fund aimed at early-stage startups in fintech, digital assets, and AI.

As of mid-October 2024, VSOL has total assets under management of $73.8 million, with shares priced at approximately €8.229 ($8.93).

The integrated staking feature automates the technical aspects of staking, making it easier for investors to participate.

VanEck's staking approach mitigates lending risks, ensuring that the ETN's custodian retains control over staked assets for enhanced security.