VanEck Partners with Kiln to Offer SOL Staking Services
The crypto-friendly asset manager VanEck has partnered with Kiln to begin staking SOL, as announced exclusively to Lightspeed.
Kiln is an enterprise staking service integrated with companies like Coinbase and Babylon.
This partnership allows VanEck to provide regulated access to Solana staking rewards in addition to the price of SOL. VanEck is among a few firms offering regulated Solana funds in Europe.
2024 has been positive for crypto, driven initially by the approval of spot bitcoin ETFs in the US. These products have attracted tens of billions in inflows since SEC approval in January, contributing to Bitcoin achieving a new all-time high this year.
Ether ETFs were also approved, though they experienced less significant flows. Other altcoin ecosystems are now looking to benefit from ETF momentum, with interest in a potential Solana ETF growing.
VanEck and 21Shares both applied for spot SOL ETFs this summer, but discussions have reportedly stalled due to SEC concerns that Solana may be classified as a security. The filings have been interpreted as a strategy dependent on a more favorable regulatory environment anticipated in 2025.
Currently, the primary market for regulated Solana products is in Europe. 21Shares’ Solana staking ETP is the third-largest in Europe, with over $1 billion in assets under management (AUM), according to etfbook.com. CoinShares and Valour also offer Solana ETPs with AUMs around $300 million.
VanEck’s European Solana fund is smaller, with approximately $84 million in AUM. Incorporating staking rewards via Kiln may be a strategy to increase this figure. Notably, neither US Solana spot ETF applications included staking rewards after ether ETFs had them removed.
Matthew Sigel, head of digital asset research at VanEck, indicated that staking rewards will likely become essential for Solana ETPs in Europe. He noted that in the US, the outcome of upcoming elections will significantly influence the landscape.