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Amid bullish predictions for the fifth largest cryptocurrency in the market, Solana (SOL), asset manager VanEck announced a significant upgrade to its Solana exchange-traded note (ETN), which now offers an automatic staking feature, which contributes to price returns continuous SOL.
New Staking Rules for VanEck’s Solana ETN
Matthew Sigel, head of digital assets research at VanEck, it was revealed that the Solana ETN, which trades under the ticker VSOL and currently has $73 million in assets under management, will have rewards collected and reinvested daily under the new staking rules, with the ultimate goal of attracting more investors and new capital.
On the other hand, VanEck Press release explained how the holding process works for the Solana ETN. Importantly, the accounting methods are designed to be non-custodial, which means that the custodian of the ETN assets retains full control of the SOL staked, thus eliminating the lending risks usually associated with crypto investments.
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In addition, investors in Solana ETN will not need to take any action to reap great rewards. These prizes will be calculated in the appropriate coin of ETNwhich ensures equal distribution regardless of when the investment is made, minus the 25% penalty.
Significant rewards will be reflected in the day-end net value (NAV), with a cut-off point at 4 PM CET, allowing investors to gain staking without the “constraints” usually involved in handling crypto assets directly.
The company also instructs its custodian to send the SOL to an authentication facility owned and maintained by the tangible provider. Importantly, control of the deployed SOL remains with the host, ensuring security and stability.
Once the SOL is transferred, the validator node earns various rewards, including inflation and withhold rewardscontinuously accumulated. These rewards will be reinvested into the ETN daily, contributing to its overall performance.
SOL Price Prediction
The fifth largest cryptocurrency, has shown significant price action over the past month, gaining nearly 10% and currently trading at $164.50. This recovery follows a major decline to around $109 on August 5, marking a strong comeback amid bearish market sentiment.
Market analyst Carl Runefelt recently highlighted Solana’s potential for further gains on Monday social media postsstating that the token may “go parabolic from today.”
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Runefelt identified an important technical pattern on the daily SOL/USDT chart, identifying a breakout from a “Cup and Handle” formation. This bullish pattern it usually means strong bullish momentum, with Runefelt revealing a potential price target of $370.
Achieving this target would mean Solana surpassing the all-time high of $259, set for November 2021. bullish forecasts in the cryptocurrency market, especially Bitcoin, which is also expected to hit hard in the coming months.
Featured image from DALL-E, chart from TradingView.com
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