After spending most of 2019 in vain acquiring its US Securities and Exchange Commission approved ETF or ETFs, VanEck has finally launched a Bitcoin-backed exchange-traded product.
However, according to a November 25 tweet from digital real estate analyst Gabor Gurbak, the product is a note traded on a stock exchange, not an ETF, and is not listed on the US stock exchange, but on Germany’s Deutsche Börse Xetra. …
Instead of being a mutual fund, ETN is actually a debt instrument that tracks a sometimes difficult-to-access market, in this case Bitcoin (BTC).
VanEck Vectors Bitcoin ETN is 100% supported by physical bitcoin and gives investors a first-hand experience of the bitcoin market through the robust format of the other listed products. Dominik Boeger, product manager, explained:
“Our Bitcoin ETN is completely secure. This means that the money invested in ETN is actually used to buy bitcoins. Thus, each ETN represents a certain amount of bitcoins. ”
Bitcoin will be deposited and stored in cold storage at Crypto Frick Bank from Liechtenstein.
VanEck went to great lengths to persuade the SEC to approve a Bitcoin ETF during the first half of 2019, but to no avail, and the Chicago Board Options Exchange withdrew its offer in September, a month ahead of schedule.
According to the Cointelegraph, the company has recently published research showing that bitcoin is less volatile than many stocks listed on the S&P 500.