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VanEck EU launches physical backed Bitcoin ETN on Deutsche Boerse Xetra

  • Digital Asset Manager at VanEck announced the listing of a Bitcoin physical backed ETN on Deutsche Böers Xetra.
  • VanEck Europe’s Bitcoin ETN will receive its valuation from MVIS CryptoCompare index.

Gabor Gurbacs, digital asset manager at VanEck, has 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 stock exchange Xetra, as Gurbacs said:

Launching a Bitcoin ETP was a top priority for VanEck. We succeeded! VanEck hopes to serve many in Europe and Asia!

By being 100% backed by BTC, VanEck Europe offers its clients a means 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 the cryptocurrency in their investment portfolio. Gurbacs added:

VanEck is committed to support Bitcoin and financial innovation. We are thankful to partners, clients, regulators, financial services industry participants and Bitcoiners for the work and support in making Bitcoin more institutionally accessible. Thank you and well done all!

Bitcoin ETN features from VanEck

As a product added to the Deutsche Börse Xetra list, VanEck Europe’s Bitcoin ETN has a 2% total expense ratio and allows investors to buy or sell the product like any other investment method on traditional exchanges. VanEck Europe will use the Bitcoin VWAP Close Index from MVIS CryptoCompare which will connect it directly with Bitcoin’s price. Product Manager at VanEck, Dominik Poiger also said:

Our Bitcoin ETN is fully collateralised. This means that the money invested in the ETN is actually used to buy bitcoin. In this way, each ETN represents a certain amount of Bitcoin.

The BTCs purchased by VanEck to support its product will be held by Bank Frick, a regulated crypto custodian in Liechtenstein. The BTCs will be stored in a cold wallet. The product’s investors will be able to monitor at any time that the funds in BTC that support their TNC are available. The Head of Fund and Capital Markets at Bank Frick, Raphael Haldner, further stated:

Thanks to our early market entry, we can demonstrate established and secure processes and extensive expertise.

Due to VanEck’s product characteristics, the pressure to buy BTC may increase. With the involvement of players such as PayPal and other institutional investors, buying pressure was already high in the past weeks. Therefore, there could be a positive impact on price. At the time of publication, Bitcoin is trading at $19,252 with gains of 0.17% on the last day.

About Author

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Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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