VanEck’s Launches Physically-Backed Bitcoin ETN on Deutsche Böerse Xetra
Asset manager VanEck has listed a Bitcoin ETN on the regulated segment of Deutsche Börse Xetra, as per the announcement on Wednesday.
This product will allow investors to participate directly in the performance of bitcoin but without buying the digital currency themselves, making it as “uncomplicated” as trading in shares or ETFs.
“Bitcoin's low correlation to other asset classes makes it an excellent way to contribute to the diversification of a portfolio,” says Martijn Rozemuller, Head of Europe at VanEck.
For cold storage, VanEck is working with Liechtenstein-based regulated crypto custodian Bank Frick.
The most important feature of this Bitcoin ETPs is that it is physically backed by the real BTC meaning the
“money invested in the ETN is actually used to buy bitcoin.”
Negligible premium/discount to NAV, transparent holdings, transparent prices, and investor protections are its other features, shared Gabor Gurbacs, VanEck's director of digital asset strategy.
“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,” Gurbacs said.
VanEck had also filed for a Bitcoin ETF in the US in collaboration with SolidX but like all the other proposals, it was rejected by the regulators. Before the final deadline, it actually withdrew its own proposal but said it will continue to pursue an exchange-traded fund.