On Wednesday (April 6), VanEck Europe launched three new exchange-traded notes (ETNs) for the following highly popular cryptoassets: Terra ($LUNA), FTX Token ($FTT), and Algorand ($ALGO).
VanEck Terra ETN (VLNA)
The VanEck Terra ETN is “a fully-collateralized exchange traded note that invests in LUNA.” It “seeks to replicate the value and yield performance of the MVIS® CryptoCompare Terra VWAP Close Index.”
This ETN offers “direct exposure to the tokens underpinning the smart contract Terra platform”, is “100% backed by LUNA and stored in cold storage at a regulated crypto custodian with crypto insurance (up to a limited amount)”, and is “tradeable like an ETF on regulated exchanges.”
Product details:
- Product Ticker: VLNA
- Custodian: Bank Frick & Co. AG
- Index Ticker: MVLUNAV
- Index Provider: MV Index Solutions GmbH
- Inception Date: 24 Mar 2022
- Base Currency: USD
- Total Expense Ratio: 1.5%
The VanEck Terra ETN is currently listed on Deutsche Börse (EUR) and SIX Swiss Exchange (USD and CHF).
VanEck FTX Token ETN (VFTX)
The VanEck FTX Token ETN is a fully-collateralized exchange traded note that invests in FTT. It “seeks to replicate the value and yield performance of the MVIS® CryptoCompare FTX Token VWAP Close.”
This ETN offers “direct exposure to the tokens underpinning the FTX Exchange”, is “100% backed by FTT and stored in cold storage at a regulated crypto custodian with crypto insurance (up to a limited amount)”, and is “tradeable like an ETF on regulated exchanges.”
Product details:
- Product Ticker: VFTX
- Custodian: Bank Frick & Co. AG
- Index Ticker: MVFTTV
- Index Provider: MV Index Solutions GmbH
- Inception Date: 24 Mar 2022
- Base Currency: USD
- Total Expense Ratio: 1.5%
The VanEck FTX Token ETN is currently listed on Deutsche Börse (EUR).
VanEck Algorand ETN (VGND)
The VanEck Algorand ETN is “a fully-collateralized exchange traded note that invests in ALGO.” It “seeks to replicate the value and yield performance of the MVIS® CryptoCompare Algorand VWAP Close Index.”
This ETN offers “direct exposure to the tokens underpinning the smart contract Algorand platform”, is “100% backed by ALGO and stored in cold storage at a regulated crypto custodian with crypto insurance (up to a limited amount)”, and is “tradeable like an ETF on regulated exchanges.”
Product details:
- Product Ticker: VGND
- Custodian: Bank Frick & Co. AG
- Index Ticker: MVALGOV
- Index Provider: MV Index Solutions GmbH
- Inception Date: 24 Mar 2022
- Base Currency: USD
- Total Expense Ratio: 1.5%
The VanEck Algorand ETN is currently listed on Deutsche Börse (EUR).
According to a press release by leading digital asset market data provider CryptoCompare, the underlying indices for these three new crypto ETNs — the MVIS CryptoCompare Terra VWAP Close Index (ticker: MVLUNAV), MVIS CryptoCompare FTX Token VWAP Close Index (ticker: MVFTTV), and the MVIS CryptoCompare Algorand VWAP Close Index (ticker: MVALGOV) — were licensed to VanEck Europe by MV Index Solutions GmbH (MVIS®) and CryptoCompare. These indices are “designed to measure the performance of the respective digital assets – Algorand, FTX Token and Terra, with a closing value based on an hourly Volume Weighted Average Price (VWAP).”
Charles Hayter, CEO and Co-Founder of CryptoCompare, had this to say:
“CryptoCompare is delighted to work with MVIS to license a selection of new indices to VanEck that will be used to underlie three digital asset ETNs. These new products will help address the growing demand for regulated digital asset investment products and provide investors with a means of gaining exposure to a wider selection of digital assets.“
Martijn Rozemuller, CEO at VanEck Europe, stated:
“As the top dog in the crypto market, the Bitcoin ETN is still in the line-up. Younger platforms in particular offer many advantages, such as lower transaction costs or faster processes… In addition, cryptocurrencies are a good way to diversify one’s portfolio due to their low correlation to other asset classes… But the market continues to be in flux: There are now more than 10,000 different cryptocurrencies and no one knows which networks will be the most important in ten years.“
And Thomas Kettner, COO of MV Index Solutions, added:
“We are happy VanEck has licensed another three digital assets indices given the success of the products based on the MVIS CryptoCompare Avalanche VWAP Close and MVIS CryptoCompare Polygon VWAP Close indices.“
Today’s announcement means that VanEck now offers 10 single-asset crypto ETNs, i.e. for Bitcoin ($BTC), Ethereum ($ETH), Polkadot ($DOT), Solana ($SOL), TRON ($TRX), Polygon ($MATIC), Avalanche ($AVAX), Terra ($LUNA), FTX Token ($FTT), and Algorand ($ALGO).
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 “sergeitokmakov” via Pixabay
