The crypto asset manager VanEck has expanded its portfolio of exchange-traded crypto products. Since yesterday, September 21, three more exchange-traded notes (ETNs) have been available via Xetra, the electronic trading system of Deutsche Börse. The press release shows that the ETNs represent the price development of the altcoins Solana, Polkadot and Tron.
An ETN is a bond that maps the index of a (here digital) currency. In the case of the new VanEck products, investors can benefit from the price development of the respective coin without having invested in the cryptocurrency themselves. The risk is so lower than with direct transactions on BTC exchanges. This is all the more true as the ETNs are secured by stored equivalent values. Institutional investors in particular are grateful for such investment vehicles. One Overview page From VanEck, however, it can be seen that the crypto ETNs are rated with the highest risk level for exchange products.
VanEck started offering a BTC ETN on Deutsche Börse last year. The company also publishes ETNs for BTC Cash, ETH and Litecoin there. A total of 18 crypto ETNs from seven issuers are available on Xetra. With a monthly order book turnover of 900 million euros, Deutsche Börse is the leading hub for crypto-related ETNs in the EU.
VanEck relies on smart contract platforms
If you look at the new ETNs, a resounding commonality reveals itself. VanEck has selected three coins, behind which there are blockchain platforms for processing smart contracts. Solana in particular is currently very popular with the crypto community, and even institutional investors recently pumped capital into the altcoin.
Polkadot’s share price also rose sharply last month. VanEck advertises the platform behind it because of its “combination of interoperability, security, speed and low transaction costs.” In contrast, the release of a Tron ETN may come as a surprise. Coin and platform have not made the same headlines here in recent months. VanEck describes Tron as “one of the fastest growing crypto platforms.”
Waiting for the BTC ETF
While the ETN business starts in Germany, VanEck has to be patient on the other side of the Atlantic. Because the US Securities and Exchange Commission (SEC) postponed the decision on a possible BTC ETF of the company on September 8th. However, November 14th has been set as the new and final deadline.
