VanEck launches Bitcoin ETN on Deutsche Börse Xetra

Asset Manager, VanEck launches a 100% bitcoin supported exchange-traded note (ETN) on Germany's Deutsche Borse Xetra marketplace.

By · Nov 27, 2020 . 5min read

VanEck launches Bitcoin ETN latest news

VanEck, an asset fund manager, launches a Bitcoin-backed ETN (exchange-traded note). It is an unsecured debt security issued by an underlying bank. Germany’s Deutsche Börse Xetra lists ETN. Moreover, it indicates that regulated financial companies and asset managers will have no legitimate concerns. The new cryptocurrency derivative is 100% Bitcoin collateralized security. Thus, suggesting that the fund’s investors can immediately obtain publicity to the pioneer digital coin without really purchasing it themselves.

VanEck’s ETN has 2% expense ratio.

 According to a VanEck press release, investors can use the new VanEck’s ETN to understand how bitcoin functions without buying it. The VanEck product intends to reflect bitcoin’s achievement. Bitcoin backs the ETN. As a product attached to the Deutsche Börse Xetra list, VanEck Bitcoin ETN has a 2% total expense ratio. Moreover, it enables investors to purchase or exchange the product like any other investment option on conventional exchanges. VanEck will utilize the Bitcoin VWAP Close Index from MVIS CryptoCompare which will compare it immediately with Bitcoin’s price. 

Bank Frick will provide custody to the bitcoin obtained by VanEck to strengthen its product portfolio. Bank Frick is a regulated crypto custodian in Liechtenstein. It will thus employ cold storages for the same. Furthermore, the product’s investors will be capable of monitoring at a given time. Moreover, the ETN will offer state-of-the-art investor protections. It will also offer low premium and, discount to NAV (net asset value). Furthermore, it also involves honest pricing and professional asset management services administered by the company. 

However, VanEck was among one of the firms who were not successful in their attempts to receive a bitcoin ETF listed by the U.S. Regulators. It repeatedly called the chance of market manipulation and the necessity of surveillance agreements among exchanges for their procrastination in endorsing such products. VanEck placed a lot of effort into an attempt to persuade the SEC to accept its BTC ETF throughout the first quarter of 2019. However, it was in vain.

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