Today, VanEck Europe, an arm of US-headquartered major US asset manager VanEck, launched its crypto exchange-traded note (ETN), tradable via Deutsche Börse Xetra, targeting investors in Germany, the Netherlands, and the UK.
However, in the UK, the company targets professional investors only, as the UK’s Financial Conduct Authority banned the sale of derivatives and ETNs that reference certain types of cryptoassets to retail consumers.
The company said that the VanEck Vectors Bitcoin ETN is a fully-collateralized exchange-traded note, meaning that “every euro invested is used to buy bitcoin” and the cryptocurrency is held by a “regulated custodian with crypto insurance”, Bank Frick & Co. AG.
“The performance of the ETN is directly linked to the price of bitcoin. The product replicates the price and yield performance of the MVIS CryptoCompare Bitcoin VWAP Close Index,” VanEck said.
Deutsche Börse claims to be the first trading platform worldwide to offer centrally cleared trading of crypto ETNs. Their first Bitcoin ETN was launched this summer.
“With a daily turnover volume of currently around EUR 10 million, Xetra has achieved a leading role in trading Bitcoin ETNs in Europe within just a few months,” they claim.
Gabor Gurbacs, Digital Asset Strategist and Director at VanEck, said that the company hopes to “serve many in Europe and Asia”.
@IamNomad @vaneck_eu Yup. Remember the convo well. Takes time to get these things done. More work to do but doors a… https://t.co/MkBFgdwLIO
— Gabor Gurbacs (@gaborgurbacs)