The post Exploring the Potential of Passive Income: VanEck Launches Staking for Solana ETN VSOL in Europe appeared on BitcoinEthereumNews.com.

VanEck has launched a staking feature for its Solana exchange-traded note (ETN), VSOL, aimed at providing passive income opportunities to investors. The initiative reflects a growing trend in the digital asset sector where traditional investment vehicles are incorporating blockchain technologies for enhanced investor benefits. Matthew Sigel stated, “This rollout allows investors to earn rewards seamlessly, reinforcing the value proposition of VSOL.” VanEck has introduced staking for its Solana ETN in Europe, enabling investors to receive daily income from staking rewards while minimizing risks. Launch of Staking for VanEck’s Solana ETN On October 21, 2023, VanEck confirmed the launch of its staking feature for VSOL, an exchange-traded note rooted in the Solana blockchain. This development signifies an evolution in investment strategies as VanEck aims to provide beneficiaries with exposure to passive income opportunities through staking rewards. Investors can expect these rewards to be reflected in the daily net asset value (NAV) of the ETN, enhancing the overall investment value in a competitive market. Understanding the Mechanics of Staking Rewards With the implementation of staking, VSOL investors will automatically receive 75% of the gross staking rewards, with a 25% deduction for VanEck’s staking fees. This model operates under a framework where no additional actions are required from the investors, effectively streamlining the process of earning passive income. The staking feature is applicable to all holders of VSOL, whether they have recently entered the market or have held the asset since its inception. Non-Custodial Approach to Staking Crucially, VanEck’s staking methodology employs a fully non-custodial strategy. This approach allows the ETN’s custodian to maintain complete control over staked assets, ultimately minimizing risks associated with lending structures. Matthew Sigel elaborated, highlighting that “in regulated traditional finance, asset managers must ensure the third-party segregation of client funds to protect investor assets.” This stipulation translates to…

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Filed under: News - @ October 21, 2024 9:19 pm