VanEck, one of the largest investment management firms has successfully launched a bitcoin-backed Exchange Traded Note (ETN) which is listed on Deutsche Börse Xetra. The investment management firm has been quite active in its approach to launch a Bitcoin Exchange Traded Product for quite some time. The firm spent most of 2019 trying to pursue SEC to give them the nod to launch a Bitcoin ETF unsuccessfully.
Gabor Gurbacs, the company’s digital asset director took to Twitter to announce the launch of their first crypto ETP by its European subsidiary. The firm claimed that the ETN is 100% backed by physical bitcoins, and it would offer exposure to institutional clients in a well-regulated environment. The physical bitcoin would be held in cold storage under Liechtenstein-based crypto custodian Bank Frick.
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
Martijn Rozemuller, Head of Europe at VanEck said that the launch of the bitcoin ETN would help investors diversify their portfolio. He said,
“Bitcoin’s low correlation to other asset classes makes it an excellent way to contribute to the diversification of a portfolio. With our VanEck Vectors Bitcoin ETN, we offer a product that allows investors to benefit from the performance of Bitcoin”.
Gabor Gurbacs went on to reveal several new features of the Bitcoin ETN that they are offering to their clients. The features include,
- Physically backed (100% Bitcoin collateralized)
- Exchange listed (Deutsche Börse Xetra)
- Negligible premium/discount to NAV
- Transparent holdings
- Transparent prices
- Investor protections
Dominik Poiger, Product Manager at VanEck revealed that the ETN would be full
“Our Bitcoin ETN is fully collateralized. 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.”