Listed on the Frankfurt, Germany-based trading venue Wednesday, the VanEck Vectors Bitcoin ETN (VBTC) is physically backed by bitcoin and tracks the MVIS CryptoCompare Bitcoin VWAP Close index.
“Bringing to market a physical, fully-backed major exchange-listed bitcoin ETP was a top priority of our firm,” Gabor 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 is a form of unsecured security of debt payable to the bearer that monitors an underlying asset or an index. They actually imply that without owning it, investors can gain exposure to an asset class.
For secure Bitcoin storage services, VanEck has partnered with Liechtenstein-based crypto custodian Bank Frick. The total cost of the instrument’s management and operation, or the total cost ratio, is 2% . Investment products are currently restricted to investors in Germany, the Netherlands and the United Kingdom.
Three bitcoin ETNs are listed on Xetra now. In late June, ETC Group was first listed, followed in July by crypto ETP issuer 21Shares.
After several failures to gain approval for an exchange traded fund, or ETF, the Company has decided to start an ETN. The Exchange Commission for Securities and Exchange.
