VanEck, an asset manager has announced it had listed the VanEck Vector Bitcoin ETN on Deutsche Börse Xetra, a marketplace organizer for the trading of shares and other securities.
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According to an official press release, a new product that allows investors to participate directly in the performance of bitcoin, without having to buy the digital currency themselves. Martijn Rozemuller, Head of Europe at VanEck, believes that bitcoin's low correlation to other traditional assets makes it "an excellent way to contribute to the diversification of a portfolio."
"With our VanEck Vectors Bitcoin ETN, we offer a product that allows investors to benefit from the performance of Bitcoin," he added.
VanEck's collateralized bitcoins will reportedly be stored in cold storage at Bank Frick, a crypto custodian regulated in Liechtenstein. The performance of the ETN - according to VanEck - will be tied to the performance of the MVIS CryptoCompare Bitcoin VWAP Close Index, the price of which "is directly linked to that of the Bitcoin."
Instead of create a crypto wallet, the purchase and storage of ETN is as uncomplicated as trading in shares or ETFs, VanEck emphasizes.
In September 2019, Cboe BZX withdrew its application to list a bitcoin ETF, which was filed by VanEck and SolidX. The both companies planned to launch their bitcoin ETFs in the Chicago Options Exchange (Cboe).
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