Management company VanEck has listed VanEck Vectors Crypto Leaders ETN on the regulated Xetra segment of the German stock exchange. With this new ETN (Exchange Traded Note), investors will be able to invest on the stock exchange in a selection of the most important and liquid cryptocurrencies and participate in their development: Bitcoin, Ether, Solana, Cardano, Polkadot and Litecoin.
“The offer of cryptocurrencies is now huge,” explains Martijn Rozemuller, CEO of VanEck Europe. “The market is currently dominated by heavyweights like Bitcoin and Ether. However, new cryptocurrency platforms such as Solana, Avalanche, Polkadot and Polygon are emerging, which are more efficient or offer further application possibilities beyond just the digital currency function. This makes this asset class very attractive for investors, even if it risks becoming opaque due to the growing number of assets ”.
Those who want to invest in multiple cryptocurrencies must face the challenge of identifying the most relevant ones among the many available in addition to Bitcoin and Ether and assess their future importance. However, with VanEck Vectors Crypto Leaders ETN it is now possible to simultaneously invest in six of the currently most important and liquid cryptocurrencies through a single investment solution.
The ETN allows a fully collateralised investment in major crypto assets
The ETN replicates the performance of the MVIS CryptoCompare Crypto Leaders VWAP Close Index. The index tracks the performance of major and liquid digital assets listed on one or more of the 15 major exchanges of the data provider CryptoCompare’s Exchange Benchmark, rated and approved for investability. The index currently includes the following six cryptocurrencies: Bitcoin, Ether, Solana, Cardano, Polkadot and Litecoin. The ETN is fully collateralised, meaning the underlying instruments are effectively purchased and held in cold storage. To obtain a high standard of security regarding the custody of the cryptocurrencies of its ETNs, VanEck relies on Bank Frick, a depositary bank regulated by the legislation of Liechtenstein, a country belonging to the European Economic Area (See).
“VanEck Vectors Crypto Leaders ETN makes it easy for investors to diversify into cryptocurrencies,” says Rozemuller. “It is not necessary to create a specific portfolio and keep individual cryptocurrencies in your wallet, but it is possible to participate in the development of different cryptocurrencies with a single product, in the same way as an ETF, and at the same time diversify the investment risk”.
With the listing of VanEck Vectors Crypto Leaders ETN on the regulated segment of the German stock exchange Xetra, investors can buy and sell the new product in the same way as other regulated products on the exchange. The ETN has a Total Expense Ratio (TER) of 1.50% and is rebalanced monthly.