Asset manager VanEck has listed two new crypto exchange-traded notes (ETNs) on the SIX Swiss Exchange, bringing the number of cryptocurrencies for which offers exchange-traded products (ETPs) to seven.

In a press release issued on Wednesday (December 16), VanEck reminded us that it had already launched ETNs on Bitcoin ($BTC), Ethereum ($ETH), Polkadot ($DOT), Tron ($TRX), and Solana ($SOL) in Europe. For example, on September 24, VanEck announced that it had listed three new crypto ETNs (for $SOL, $TRON, and $DOT) on the Euronext exchanges in Paris and Amsterdam.

Here is how VanEck described Avalanche and Polygon:

“Avalanche serves as a platform for creating decentralised apps (dApps) and customised blockchains and is considered a competitor to Ethereum. Among the proof-of-stake protocols, it has the most verifiers to validate transactions. Avalanche requires the least hardware of any blockchain platform, eliminating the need for expensive hardware for verifiers. The network is compatible with the Ethereum Virtual Machine (EVM) and allows developers to broadcast decentralised applications from Ethereum.“

“Polygon is a Layer 2 network that aims to deliver Ethereum mass scalability and interoperability with other blockchains. It aims to solve the congestion problems of the Ethereum network. Polygon was designed as an ecosystem of Ethereum-scaling blockchains, similar to Polkadot and Cosmos, but using Ethereum’s security and network effect.“

Martijn Rozemuller, CEO of VanEck Europe, had this to say about the two new listings:

“Ethereum has established itself as number two in the crypto market after Bitcoin and, as a decentralised smart contract platform, now forms the basis for many blockchain applications. In the meantime, however, there are other platforms that offer promising alternatives, for example by offering higher speeds, or that support the existing Ethereum platform as ‘sidechains’, making it faster and cheaper to carry out transactions.“

VanEck went on to say:

“With the two new ETNs, VanEck enables investors to participate in the development of AVAX and MATIC – and thus the development of the associated networks – at a total expense ratio of 1.5 per cent.“

VanEck Vectors Avalanche ETN

The VanEck Vectors Avalanche ETN is “a fully-collateralized exchange traded note that invests in AVAX.” This note “seeks to replicate the value and yield performance of the MVIS® CryptoCompare Avalanche VWAP Close Index.”

Main features:

  • “Direct exposure to the tokens underpinning the smart contract Avalanche platform, unique for its fast speeds and light hardware specs.“
  • “100% backed by Avalanche and stored in cold storage at a regulated crypto custodian with crypto insurance (up to a limited amount)“
  • “Tradeable like an ETF on regulated exchanges“

VanEck Vectors Polygon ETN

The VanEck Vectors Polygon ETN is “a fully-collateralized exchange traded note that invests in MATIC.” This note “seeks to replicate the value and yield performance of the MVIS® CryptoCompare Polygon VWAP Close Index.”

Main features:

  • “Direct exposure to Polygon, a “layer 2” blockchain which uses an innovative SDK (software development kit) to attract developers looking to build Ethereum-compatible decentralized applications more cost efficiently.“
  • “100% backed by Polygon and stored in cold storage at a regulated crypto custodian with crypto insurance (up to a limited amount)“
  • “Tradeable like an ETF on regulated exchanges“

Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

Image Credit

Featured Image by “ChiemSeherin” via Pixabay