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- Digital Asset Manager at VanEck announced the listing of a physical Bitcoin backed ETN on Deutsche Böers Xetra.
- VanEck Europe’s Bitcoin ETN will receive its valuation from the MVIS CryptoCompare index.
Gabor Gurbacs, digital asset manager at VanEck, announced the launch of a Bitcoin exchange-traded note (ETN) by its subsidiary VanEck Europe. The financial product is physically backed by BTC and has been added to the German exchange Xetra, like Gurbacs said:
Launching a Bitcoin ETP was a top priority for VanEck. We succeeded! VanEck hopes to serve many people in Europe and Asia!
By being 100% backed by BTC, VanEck Europe offers its clients a way to gain exposure to the underlying asset and benefit from its performance without having to maintain BTC. Therefore, investors do not need a Bitcoin wallet or technical expertise to include cryptocurrency in their investment portfolio. Gurbacs added:
VanEck is committed to supporting Bitcoin and financial innovation. We thank partners, customers, regulators, participants in the financial services industry and Bitcoiners for the work and support needed to make Bitcoin more institutionally accessible. Thank you and congratulations to all!
VanEck today announced the listing of a new #AND N which reflects the performance of the leader #cryptocurrency #Bitcoin. Investors from Germany, Netherlands and UK can find out more @ https://t.co/vSH5Jr6Aic pic.twitter.com/eOVFN82Nra
– VanEck Europe (@vaneck_eu) November 25, 2020
VanEck Bitcoin ETN Features
As an added product to the Deutsche Börse Xetra list, VanEck Europe’s Bitcoin ETN has a total expense ratio of 2% and allows investors to buy or sell the product like any other method of investing on traditional exchanges. VanEck Europe will use MVIS CryptoCompare’s VWAP Bitcoin Close Index which will link it directly to the price of Bitcoin. Product Manager at VanEck, Dominik Poiger also said:
Our Bitcoin ETN is fully guaranteed. This means that the money invested in the ETN is actually used to buy bitcoin. This way, each ETN represents a certain amount of Bitcoin.
BTCs purchased by VanEck to support its product will be held by Bank Frick, a regulated crypto custodian in Liechtenstein. BTC will be stored in a cold wallet. Investors of the product will be able to monitor the availability of BTC funds that support their TNC at any time. Bank Frick’s Head of Funds and Capital Markets Raphael Haldner further said:
Through our early entry into the market, we can demonstrate established and secure processes and extensive expertise.
Due to the characteristics of the VanEck product, the pressure to buy BTC may increase. With the involvement of players such as PayPal and other institutional investors, the buying pressure was already strong in recent weeks. Therefore, there could be a positive impact on the price. At the time of publication, Bitcoin is trading at $ 19,252 with gains of 0.17% on the last day.