American investment management firm VanEck has added staking rewards to its Solana ETN (Exchange-Traded Note) in Europe. This might offer investors a new way to generate passive income.
The staking rewards are automatically reinvested and reflected in the product’s daily net asset value (NAV). As of mid-October, the ETN, which trades in Euronext Amsterdam, holds approximately $74 million in assets.
Solana ETN Investors Can Earn Additional SOL
Investors receive 75% of the gross staking rewards after VanEck deducts a 25% fee.
The staking process is fully non-custodial, meaning the custodian retains control over the staked assets, ensuring the security of the investments. This move follows VanEck’s earlier introduction of Ethereum staking rewards within its Ethereum ETN.
Read more: Solana ETF Explained: What It Is and How It Works
Despite seeing significant success for its Solana exchange-traded product in Europe, VanEck is still awaiting the SEC’s decision on its ETF application filed in July. The company’s US offering, known as the VanEck Solana Trust, does not include staking and will hold its Solana reserves in a similar manner to US-approved spot Ethereum ETFs.
However, the firm’s Head of Digital Assets Research, Matthew Sigel, thinks Solana ETF approvals are unlikely under the current SEC chair, as mentioned in a tweet earlier today.
Bloomberg’s Senior ETF Analyst, Eric Balchunas, also previously expressed skepticism about Solana ETF approvals until the upcoming US elections.
“Looks like Solana ETFs are going to have a final deadline of mid-March 2025. But between now and then the most important date is in November. If Biden wins, these likely (dead on arrival) DOA. If Trump wins, anything possible,” Balchunas wrote on X (formerly Twitter).
Read more: Crypto ETN vs. Crypto ETF: What Is the Difference?
As of now, staking rewards are not permitted in US crypto ETFs – for both Bitcoin and Ethereum. These ETFs hold the assets directly and only mirror the spot price without generating additional staking income.
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