As a seasoned researcher with years of experience in the dynamic world of digital assets, I find VanEck’s move to incorporate staking into its Solana ETN for European investors an exciting development. The integration of staking rewards into VSOL, a product already managing $73 million in assets, signals a growing maturity and acceptance of blockchain technology within traditional financial structures.
Exciting news for me as a crypto investor! The asset management firm, VanEck, has just announced an update on their Solana exchange-traded note. Now, European investors like myself can take advantage of staking with this investment. This means we can earn rewards while holding onto our Solana tokens, adding another layer of potential gains to our portfolio.
As an analyst, I’m excited to announce that I am participating in the staking for VanEck’s Solana (SOL) Exchange-Traded Note (ETN), VSOL, which is available for holders across the European market. With assets under management currently valued at $73 million, this digital ETN, incorporated in Liechtenstein, aims to mirror the price of Solana.
As an analyst, I would express this by saying: “I mirror both the price and yield equivalent to the Volume-Weighted Average Price (VWAP) of the SOL asset, which fully collateralizes the ETN.
Staking rewards to accrue daily
According to the rules, asset managers must separate client funds to safeguard their assets. In the case of VanEck, they do not personally invest client funds using their own resources, but rather employ custodians to hold the physical Solana (SOL) tokens on behalf of the clients.
In simpler terms, custodians transfer SOL tokens (which are kept securely offline) to validator nodes, as suggested by Mathew Sigel, head of digital asset research at VanEck. Daily staking rewards are earned and automatically reinvested into the product’s total value, calculated during the end-of-day assessment. To maintain daily liquidity, VanEck will oversee management of the staking exposure.
VanEck has recently decided to incorporate staking into its operations, following closely on the heels of the establishment of VanEck Ventures – a $30 million investment fund dedicated to nurturing early-stage firms active in sectors like fintech, digital assets, and artificial intelligence.
As crypto.news recently highlighted, the fund has already attracted four undisclosed investments.
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2024-10-21 18:22