New York-based investment management firm VanEck is listing cryptocurrency exchange-traded products (ETPs) on the Euronext stock exchanges in Amsterdam and Paris on June 1.
- The investment firm said the VanEck Vectors Bitcoin exchange-traded note (ETN) and VanEck Vectors Ethereum ETN will both be listed on the two exchanges in Europe on Tuesday with a total expense ratio of 1%.
- The ETNs will give investors exposure to the price of bitcoin and ethereum without investors having to buy the crypto themselves. Both ETNs are fully collateralized and each ETN share represents the share of bitcoin or ethereum.
- VanEck will rely on Bank Frick as the custodian which is regulated in the European Economic Area country of Liechtenstein, where the cryptocurrencies held by the ETNs will be kept in cold storage to guarantee their security.
- An ETN is a type of unsecured debt security payable to the bearer that tracks an underlying asset or an index. In effect, investors gain exposure to an asset class without owning it.
- “Bitcoin and ethereum have firmly established themselves on the market as the two largest cryptocurrencies. Due to their low correlations to other asset classes, they provide an interesting opportunity to diversify one’s investment portfolio," says Martijn Rozemuller, CEO at VanEck Europe.
- Currently, a VanEck crypto ETN already trades on the Deutsche Börse Xetra market in Germany.
- In May, the investment firm launched a thematic exchange-traded fund (ETF) in Europe, the “VanEck Vectors Digital Assets Equity UCITS ETF,” offering exposure to companies in cryptocurrency and blockchain.
- Meanwhile, VanEck’s application to launch a bitcoin ETF in the U.S. is being considered by the Securities and Exchange Commission.