VanEck Vectors Bitcoin ETN
The VanEck Vectors Bitcoin ETN is a fully-collateralized exchange traded note listed on the regulated segment of Deutsche Boerse Xetra.

ISIN: DE000A28M8D0

• Safety: Every Euro invested is used to buy bitcoin. To protect the bitcoin, we are using a regulated custodian (Bank Frick & Co. AG) with crypto insurance to store the asset in cold storage. All participants can – at all times – verify the existence of the collateral.
• Securitization on a regulated exchange: The VanEck Vectors Bitcoin ETN trades like a stock or an ETF on Deutsche Boerse Xetra.
• Eligibility: The VanEck Vectors Bitcoin ETN trades in the regulated segment of the Deutsche Boerse Xetra. Unlike bitcoin, it can be traded and custodied by the traditional members of the supply chain.
• Simplicity: The performance of the ETN is directly linked to the price of bitcoin. The product replicates the price and yield performance of the MVIS CryptoCompare Bitcoin VWAP Close Index.
• Collateralization: Every Euro invested into the VanEck Vectors Bitcoin ETN will be used to buy bitcoin. The product is fully collateralized and each note represents a certain amount of bitcoin collateral.

VanEck lists bitcoin ETN on Deutsche Börse
SUBMITTED
25/11/2020 - 9:43AM
Asset Manager VanEck has listed the VanEck Vector Bitcoin ETN on Deutsche Börse Xetra, a new product that allows investors to participate directly in the performance of bitcoin, without having to buy the digital currency themselves.


“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”. 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.
 
"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.

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 collateralised. 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.” 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,” says 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.

Exchange Traded Fund – ETF
In practice, the two are very similar. Both are designed to track an underlying asset, both often have lower expense ratios than actively managed mutual funds, and both trade on the major exchanges just like stock.

The main difference is under the hood. When you invest in an ETF, you are investing in a fund that holds the asset it tracks. That asset may be stocks, bonds, gold or other commodities, or futures contracts.

Exchange Traded Note – ETN
An ETN is more like a bond. It's an unsecured debt note issued by an institution. Just like with a bond, an ETN can be held to maturity or bought or sold at will, and if the underwriter (usually a bank) were to go bankrupt, the investor would risk a total default.

For that reason, before investing in an ETN, research into the credit rating of the underwriter is an important metric. If the underwriter were to receive a credit downgrade, shares of the ETN would likely experience a downturn unrelated to the underlying product it's tracking.

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A small article to see what are the basic differences between an ETF and an ETN

VanEck ETP AG (“VEEA”), (LEI 529900R2B8HNG8H5ED30) is a society limited by shares
(Aktiengesellschaft) established in Liechtenstein and subject to the laws of the Principality of Liechtenstein. The
registered office of the company is Landstrasse 36, 9495 Triesen, Liechtenstein. The company has been registered in
the Liechtenstein Public Register on 16 July 2020 with register number FL-0002.640.173-8.
The Issuer has been established as a special purpose vehicle for the sole purpose of issuing collateralized exchange
traded securities. The majority shareholder of the Issuer is VanEck (Europe) GmbH, which in turn is held by Van Eck
Associates Corporation. The members of the Board of Directors are Mr. Torsten Hunke, Mr. Gijsbert Koning, Mr.
Alexander Baker and Mr. Arno Sprenger. The company’s auditor is AAC Revision & Treuhand AG.