Posted 11 months ago | by @devadmin
European investment firm VanEck, has launched a Bitcoin exchange-traded-note (ETN) to be traded on the Deutsche Boerse Xetra.
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
The ETN will be listed on the Frankfurt, Germany-based exchange Deutsche Boerse Xetra. VanEck Vectors Bitcoin ETN (VBTC) is physically backed by Bitcoin and tracks the MVIS CryptoCompare Bitcoin VWAP Close index according to a tweet from the company’s digital asset strategist Gabor Gurbacs.
“Bringing to market a physical, fully-backed major exchange-listed bitcoin ETP was a top priority of our firm,” Gurbacs, director of digital-asset strategy at VanEck, said. “We hope to serve many clients and partners in Europe, Asia, and across the world using our innovative, investment-friendly, and regulatory-conscious access vehicles.”
An ETN unlike a mutual exchange-traded fund (ETF), is a unsecured debt security payable to the bearer that tracks an underlying asset or an index, in this case Bitcoin. Essentially investors can gain exposure to Bitcoin without owning physically owning it themselves.
VanEck has partnered with Liechtenstein-based crypto custodian Bank Frick to securely hold its Bitcoin in cold storage. The total cost associated with managing and operating the instrument, or the total expense ratio, is 2%. The investment product is limited to investors from Germany, the Netherlands and the U.K, Coindesk reported.
In the past VanEck has attempted to lobby a Bitcoin exchange-traded fund, ETF through the U.S. Security and Exchange Commission (SEC) without success.
Those who choose to use the ETNs will have zero responsibility for holding Bitcoin or using a complicated wallet, which means as Bitboy Crypto said in a recent video from the mountains older folks will be able to get their feet wet by buying cryptocurrency.
“Bitcoin’s low correlation to other asset classes makes it an excellent way to contribute to the diversification of a portfolio,” Martijn Rozemuller, Head of Europe at VanEck said in a press release. “With our VanEck Vectors Bitcoin ETN, we offer a product that allows investors to benefit from the performance of Bitcoin”. However, instead of requiring a so-called wallet, as is customary with cryptocurrencies, in which bitcoin is stored separately from the rest of the portfolio on the blockchain, the purchase and storage of ETN is as uncomplicated as trading in shares or ETFs.”
“VanEck is committed to support Bitcoin-focused financial innovation. Bringing to market a physical, fully-backed major exchange-listed Bitcoin ETP was a top priority of our firm. We succeeded! We hope to serve many clients and partners in Europe, Asia and across the world using our innovative, investment-friendly and regulatory-conscious access vehicles,” said Gabor Gurbacs, VanEck’s director of digital asset strategy.
You can watch Bitboy Crypto (Ben) explain how older folks are getting involved in buying Bitcoin with ETNs in the video below.
Bitcoin is currently trading at [FIAT: $18,839.94] DOWN -1.4% in the last 24 hours according to Coingecko at the time of this report.