- VanEck’s Solana ETN on Euronext Amsterdam has added crypto staking rewards, offering returns reinvested daily to increase investors’ returns.
- The move supports the growth of Solana’s network and signals growing institutional interest in crypto staking products in Europe.
VanEck improved his Solana (SOL) investment product in Europe by integrating staking rewards. This was a move aimed at increasing returns for investors while supporting broader adoption of Solana.
The Solana Exchange Traded Note (ETN), listed on the Euronext Amsterdam stock exchange in the Netherlands, holds $74 million in assets. With the addition of staking rewards, the product will now allow investors to earn additional Solana Returns, which will be reinvested daily.
Staking rewards are generated by participating in the network consensus mechanism. This will help investors earn rewards for validating transactions on the Solana blockchain.
VanEck’s decision to include staking in the ETN follows a similar strategy implemented in April with its Ethereum ETN, which also allowed investors to receive Ethereum staking rewards.
To manage the staking process, VanEck will charge a 25% fee on accumulated rewards.
How does this decision benefit investors?
For investors, the addition of crypto staking rewards to the Solana ETN provides an attractive opportunity to generate passive income while holding the digital asset.
By reinvesting daily rewards, investors can benefit from compounding returns, potentially increasing their overall return. This feature makes VanEck’s Solana ETN more attractive to investors looking for diversified returns in the crypto market.
The inclusion of staking in an institutional product like this demonstrates growing confidence in Solana’s network and the broader crypto staking ecosystem.
As more traditional financial products incorporate staking rewards, this paves the way for increased institutional adoption of digital assets. VanEck’s decision to incorporate Solana staking aligns with the growing demand for more diversified crypto-based investment products in Europe.
Impact on Solana’s growth
VanEck’s decision not only benefits investors, but also supports the adoption of Solana. Staking helps secure the Solana network by encouraging active participation, which is essential to maintaining the security and decentralization of the blockchain.
As more investors participate in staking through products like VanEck’s ETN, it improves the health and visibility of Solana’s network.
The addition of staking rewards to traditional financial products also represents a step forward in the evolution of crypto staking.
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As traditional investment firms like VanEck continue to embrace crypto staking, this reinforces the long-term potential of digital assets like Solana.
This can drive broader market growth and adoption.