American investment management firm VanEck has introduced staking rewards to its Solana ETN (Exchange-Traded Note) in Europe, potentially providing investors with a new source of passive income. The rewards are automatically reinvested and affect the product's daily net asset value (NAV). This product is currently traded on Euronext Amsterdam, managing roughly $74 million in assets.
Investors can earn additional Solana (SOL) by receiving 75% of the gross staking rewards, with VanEck taking a 25% fee. The staking process is non-custodial, ensuring investment security as the custodian holds control over the staked assets. This initiative follows VanEck's previous addition of Ethereum staking rewards in its Ethereum ETN.
Despite notable success in Europe with the Solana product, VanEck awaits a decision from the SEC on its ETF application in the US. The VanEck Solana Trust in the US does not include staking and maintains its reserves similarly to spot Ethereum ETFs already approved there.
Concerns regarding the approval of Solana ETFs under the current SEC chair have been expressed by VanEck's Matthew Sigel and Bloomberg’s Eric Balchunas, suggesting political outcomes may influence ETF decisions. Currently, US crypto ETFs, including Bitcoin and Ethereum, are not allowed to incorporate staking rewards, only reflecting spot prices without extra income generation.
