VanEck gains Bitcoin ETN listing on Europe’s third-largest exchange

VanEck, the asset-management company, announced the addition of physically backed Bitcoin exchange-traded notes (ETNs) to the list of tradable instruments. Trading has begun on Xetra, the German exchange operated by Deutsche Boerse.

1) Today @vaneck_eu launched a #Bitcoin #ETN. The ETN is physically-backed by Bitcoin and listed on Deutsche Böerse Xetra. Launching a Bitcoin ETP was a top priority for VanEck. We succeeded! VanEck hopes to serve many in Europe and Asia! Resource page: https://t.co/oRpVOQyby2 pic.twitter.com/xnCnTWqMrG

— Gabor Gurbacs (@gaborgurbacs) November 25, 2020

VanEck’s digital assets strategist Gabor Gurbacs expects that the product will attract interest from investors in Europe and Asia, who will be able to participate in movements of the first cryptocurrency without having to buy it directly.

An ETN is like an ETF in that the issuer is not obliged to buy and hold any assets to track the price. In the case of the VanEck Vector Bitcoin ETN, it is backed 100% by real bitcoins.

«Our Bitcoin ETN is fully backed. This means that the money invested in the ETN is actually used to buy Bitcoin. Thus, each ETN represents a definite amount of the first cryptocurrency», — пояснил Dominik Poiger, VanEck’s product manager.

What is a cryptocurrency ETF?

The custodian of the bitcoins to be held will be Frick, a Liechtenstein-regulated bank.

Gabor Gurbacs also highlighted other features of the offering:

• A small premium/discount to NAV (net asset value);
• Transparency of holdings;
• Transparent pricing;
• Investor protections;
• Managed by a professional market participant.

2) Important #Bitcoin #ETP Features:
+ Physically backed (100% Bitcoin collateralized)
+ Exchange listed (Deutsche Börse Xetra)
+ Negligible premium/discount to NAV
+ Transparent holdings
+ Transparent prices
+ Investor protections
+ Professionally managed by @vaneck_eu

— Gabor Gurbacs (@gaborgurbacs) November 25, 2020

Earlier, VanEck pursued a Bitcoin ETF in the United States, but withdrew its latest application for such a product in September 2019.

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