Amid bullish predictions for the market\u2019s fifth-largest cryptocurrency, Solana (SOL), asset manager VanEck announced a significant upgrade to its Solana exchange-traded note (ETN), which now offers an automated staking feature, contributing to SOL\u2019s ongoing price recovery.\u00a0<\/p>\n
Matthew Sigel, head of digital asset research at VanEck, revealed <\/a>that the Solana ETN, which trades under the ticker VSOL and currently has $73m in assets under management, will have rewards accrued and reinvested daily under the new staking rules, with the ultimate aim of attracting more investors and new capital.\u00a0<\/p>\n On the other hand, VanEck\u2019s press release <\/a>outlined how the staking process works for the Solana ETN. Importantly, the staking methods are designed to be non-custodial, meaning that the custodian of the ETN\u2019s assets retains full control of the staked SOL, thereby eliminating lending risks typically associated with crypto investments.<\/p>\n In addition, investors in the Solana ETN will not need to take any action to receive staking rewards. These rewards will be accounted for in the coin entitlement of the ETN<\/a>, ensuring equitable distribution regardless of when the investment was made, minus a 25% staking fee.<\/p>\n The staking rewards will be reflected in the daily end-of-day net asset value (NAV), with a cutoff point at 4 PM CET, allowing investors to benefit from staking <\/a>without the \u201ccomplexities\u201d usually involved in managing crypto assets directly.<\/p>\n The firm also instructs its custodian to delegate SOL to a validator node owned and maintained by a staking provider. Importantly, control of the delegated SOL remains with the custodian, ensuring security and stability.<\/p>\n Once the SOL is delegated, the validator node earns various rewards, including inflationary and block rewards<\/a>, accrued continuously. These rewards will be reinvested into the ETN daily, contributing to its overall performance.\u00a0<\/p>\n The fifth-largest cryptocurrency, has shown significant price action over the past month, gaining approximately 10% and currently trading at $164.50. This recovery follows a significant drop to around $109 on August 5, signaling a strong rebound amidst a generally bullish market sentiment.<\/p>\n Market expert Carl Runefelt recently highlighted Solana\u2019s potential for further gains in a Monday social media post<\/a>, stating that the token could \u201cgo parabolic starting today.\u201d\u00a0<\/p>\n Runefelt pointed out a significant technical pattern on the SOL\/USDT daily chart, identifying a breakout from a \u201cCup and Handle\u201d formation. This bullish pattern<\/a> often signifies a strong upward momentum, with Runefelt projecting a potential price target of $370.<\/p>\nSOL Price Prediction<\/h2>\n