On June 1, asset manager VanEck is going to list cryptocurrency exchange-traded products (ETPs) via Euronext stock exchanges in Amsterdam (Netherlands) and Paris (France).
More specifically, the U.S.-based company will give investors exposure to the price of Bitcoin and Ethereum through ETPs called VanEck Vectors Bitcoin ETN (exchange-traded note) and VanEck Vectors Ethereum ETN, without owning any bitcoin or ether itself.
An ETN is an unsecured debt security issued by a bank, tracking an underlying asset or index. It differs from an ETF (exchange-traded fund) which is managed as a “special asset”; in the event of the provider’s insolvency, the assets remain reserved for investors.
VanEck will rely on Bank Frick as the custodian regulated in the country of Liechtenstein.
Martijn Rozemuller, CEO at VanEck Europe, gave the following statement: “Bitcoin and Ethereum have firmly established themselves on the market as the two largest cryptocurrencies. Due to their low correlations to other asset classes, they provide an interesting opportunity to diversify one’s investment portfolio”.