A bitcoin exchange-traded-note (ETN) for trading on the Deutsche Boerse Xetra has been launched by VanEck, a New York-based investment management company with about $50 billion in assets under management.
The VanEck Vectors Bitcoin ETN (VBTC) is physically backed by bitcoin (BTC, -6.29 percent) and monitors the MVIS CryptoCompare Bitcoin VWAP Near index, reported the Frankfurt, Germany-based trading venue on Wednesday.
“It was our company’s top priority to bring to market a physical, fully-backed major exchange-listed bitcoin ETP [exchange-traded product],” said Gabor Gurbacs, director of digital asset strategy at VanEck. “Using our innovative, investment-friendly and regulatory-conscious access vehicles, we hope to serve many customers and partners in Europe, Asia and throughout the world.”
An ETN is a form of unsecured debt security that tracks an underlying asset or index payable to the bearer. In essence, without owning it, investors may gain exposure to an asset class.
For safe bitcoin storage services, VanEck has partnered with Liechtenstein-based crypto guardian Bank Frick. The total cost of the instrument’s management and operation, or the total cost ratio, is 2 percent. Investment goods are currently restricted to investors from Germany, the Netherlands and the UK.
Three bitcoin ETNs are listed on Xetra now. The ETC Group was identified for the first time in late June, followed in July by crypto ETP issuer 21Shares.