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Asset Manager VanEck has announced the listing of the VanEck Vector Bitcoin ETN on Deutsche Börse Xetra. With this new product, investors can participate directly in the performance of the leading cryptocurrency Bitcoin, without having to buy it themselves. Timing is perfect, as many investors are revisiting Bitcoin as a potential inflation hedge for the first time ever. Demand for Bitcoin is approaching all-time highs.

“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. “With our VanEck Vectors Bitcoin ETN, we offer a product that allows investors to benefit from the performance of Bitcoin”.

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However, instead of requiring a so-called wallet, as is customary with cryptocurrencies, in which Bitcoin is stored separately from the rest of the portfolio on the blockchain, the purchase and storage of ETN is as uncomplicated as trading in shares or ETFs, Van Eck argues.

“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,” said Gabor Gurbacs, VanEck’s director of digital asset strategy.

ETN reflects the price performance of Bitcoin

The listing of the VanEck Vectors Bitcoin ETN in the regulated segment of Deutsche Börse Xetra allows investors to buy and sell the new product in the same way as other regulated exchange-listed products. The performance of the ETN reflects the performance of the MVIS CryptoCompare
Bitcoin VWAP Close Index, the price of which is directly linked to that of the Bitcoin.

“Our Bitcoin ETN is fully collateralized. This means that the money invested in the ETN is actually used to buy Bitcoin,” says Dominik Poiger, Product Manager at VanEck. “In this way, each ETN represents a certain amount of Bitcoin.”

Secure cryptocurrency storage

To ensure the security of Bitcoin, VanEck is working with Bank Frick, a crypto custodian regulated in Liechtenstein, where the Bitcoin are held in “cold storage.” All parties involved can thus be sure at all times that the deposited Bitcoin are in fact available. Bank Frick is one of the European pioneers in the integration of crypto currencies in the regulated banking environment.

“Thanks to our early market entry, we can demonstrate established and secure processes and extensive expertise,” said Raphael Haldner, Head of Fund and Capital Markets at Bank Frick.

Bitcoin has become a serious asset in the financial world in recent years. Because of the way the amount of Bitcoin created is limited, alongside many other advantageous properties, the world’s oldest cryptocurrency is often referred to as digital gold.


Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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