Van Eyck introduces Solana ETN shares to European investors
Key receivers
VanEck's Solana ETN in Europe now offers automatic stocking, making it easier to reward investors. The deregulated staking approach ensures investor safety by keeping proxy SOL in cold storage.
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VanEyck has updated the Solana ETN in Europe to include an automatic staking feature, streamlining the way investors accumulate and earn higher rewards.
When investors buy, they are automatically enrolled in the VanEck Solana ETN staking program, where rewards are calculated and distributed daily, net of a 25% stake fee.
Reflecting on the architecture of the memory system, Matthew Siegel, head of digital research at VanEck, explained the reasoning behind their guardless approach:
“We use the physical SOL held by the ETN to share the stake by instructing the custodian to issue the SOL to the validator. The validation node is managed by a permanent provider, and control of the delegated SOL remains in cold storage with the custodian.
This approach ensures that even though share activities are managed externally, control of the held Solana tokens remains with the custodian, reducing third-party risks and increasing capital security for investors.
Responding to questions about liquidity management with the new staging features, Siegel explained VanEck's approach:
“We use an in-house variable risk model to ensure we can meet daily redemptions. Due to the shorter durations of SOL, it is easier to do this for SOL than for ETH ETP.”
The system that VanEek employs allows daily accumulation and renewal of rewards. This process is designed to be transparent and predictable, providing clarity and stability to investors' returns.
In addition to European offerings, VanEck is also actively pursuing further integration into the crypto market, demonstrated by its recent application to launch the first Solana ETF in the US.
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