The investment management firm VanEck, based in the United States, has added (ETN) staking rewards to its Solana exchange-traded note (ETN) in Europe. This can provide investors with a new passive income generation method.
The staking rewards are automatically reinvested and reflected in the daily net asset value (NAV) of the product. As of mid-October, this ETN traded on Euronext Amsterdam has assets of around $74 million.
Solana ETN investors can earn additional SOL
Investors receive 75% of the total staking rewards after VanEck deducts a 25% fee.
The staking process is completely non-custodial, ensuring the safety of the investment by not allowing the custodian to control the staked assets. VanEck has previously introduced staking rewards on its Ethereum ETN as well.
Read more: Solana ETF Guide: What It Is and How It Works
Despite the great success of the Solana ETN in Europe, VanEck is still waiting for the SEC's decision, as the size of the US market is much larger than Europe.
The Solana spot ETF that VanEck is aiming to list in the US market does not include a staking feature. However, the approval of the ETF is not highly likely. Matthew Sigel, VanEck's head of digital asset research, tweeted today that the approval of a Solana ETF is difficult under the current SEC chairman.
Eric Balchunas, the senior ETF analyst at Bloomberg, also expressed skepticism about the approval of a Solana ETF until the upcoming US elections.
"The final deadline for a Solana ETF seems to be mid-March 2025. But the key date before then is November. If Biden wins, they'll probably be (dead on arrival) DOA. If Trump wins, anything is possible," Balchunas wrote on X (formerly Twitter).
Read more: Crypto ETN vs. Crypto ETF: What's the Difference?
Currently, staking rewards are not allowed in cryptocurrency ETFs in the US, both for Bitcoin and Ethereum. These ETFs hold the assets directly and only reflect the spot price without additional staking income.
