VanEck Launches New Crypto Exchange-Traded Note (ETN) in Europe

VanEck’s European arm has announced the launch of a multi-token cryptocurrency fund that gives European investors the financial benefits attached to holding it as an asset. The company’s European arm has listed a new Exchange Traded Note (ETN) on the SIX Swiss Exchange and the Deutsche Borse Xetra that enables investors to invest in a basket of the major crypto assets with the greatest liquidity. The asset management firm said that the new crypto fund (the VanEck Vectors Crypto Leaders ETN-VTOP) tracks the MVIS CryptoCompare Crypto Leaders VWAP Close index, which provides exposure to a selected basket of the large crypto coins with fully collateralized and the greatest liquidity. Rebalanced monthly, the ETN tracks six major cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, including Bitcoin, Ethereum and Solana. VanEck now provides European investors with ETN that offers exposure to the spot prices of Bitcoin, Ethereum, Solana, Polkadot, Polygon, TRON and Avalanche.

VanEck stated that it established the investment product to simplify investors’ tasks of investing in the ever-expanding crypto landscape. Moreover, the asset manager mentioned that it created the ETN in order to take advantage of more efficient crypto coins that extend beyond the main function as a digital currency.

Martijn Rozemuller, the Chief Executive Officer of VanEck Europe, stated: “Investors can use VTOP to invest in a diverse selection of cryptocurrencies more easily. They do not have to build their own portfolio and store individual coins in their own wallet but can benefit from the development of multiple assets through a single product, similar to an ETF while spreading their investment risk.”

The ETNs and ETFs Landscape Is Expanding

The development by VanEck comes at a time when the traditional market is getting increasing forms of investment products, including ETNs (exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term-traded notes) and ETFs (exchange-traded funds). Such forms of investments are already entering the crypto market. In November last year, Invesco launched its cryptocurrency ETN on Xetra to provide investors with an opportunity to participate in the performance of Bitcoin in a simple manner. In December last year, Deutsche Börse expanded its offering of crypto ETNs on Xetra with crypto products like Polkadot, Stellar and Tezos to offer easy access to the performance of the respective cryptocurrencies.