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Rozemuller Martijn VanEck ETF

VanEck lists three new crypto ETNs on Deutsche Börse 

VanEck now offers three new ETNs on digital assets Solana, TRON and Polkadot, to complement its Bitcoin and Ethereum ETNs

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Martijn Rozemuller, CEO at VanEck Europe


– VanEck is further expanding its pioneering role in innovative and future-oriented investment solutions.

Asset manager VanEck has now listed three new crypto ETNs on Xetra Deutsche Börse. After VanEck had already launched exchange-traded products on Bitcoin and Ethereum, partly as the first global asset manager in the respective markets, further ETNs (Exchange Traded Notes) are now following in order to open up the future market of cryptocurrencies for European investors. With this step, the accomplished ETF provider further expands its pioneering role for innovative and future-oriented investment solutions.

VanEck focuses on smart contract platforms. Smart contracts are programs that are stored on a blockchain and executed automatically when predefined conditions are met. For example, they enable improved contract processes and completely new business models. For example, you can automate workflows and trigger predefined actions without involving an intermediary or wasting time. The best-known example of such a platform is Ethereum with its integrated cryptocurrency Ether. “Ethereum continues to grow in popularity, but younger platforms also offer many advantages, such as lower transaction costs or faster processes,” says Martijn Rozemuller, CEO at VanEck Europe.

The three new ETNs allow investors to participate in the development of digital assets on an exchange-traded basis at a total expense ratio of only 1.5 per cent without having to buy them themselves. These were selected on the basis of the following seven criteria; uses and functionality, number of transactions, availability on the exchanges, track record and development team, as well as market capitalisation. VanEck chose these three from around 100 possible candidates:

– Solana is a layer one base-layer blockchain protocol that is entirely optimised for speed. Its goal is to provide a platform that developers can use to create decentralised apps (dApps) without facing performance bottlenecks. With a current capacity of 65,000 transactions per second, the Solana blockchain is currently one of the fastest. At the same time, a transaction currently costs only 0.0001 US dollars. Solana was founded by Anatoly Yakovenko, along with former Qualcomm engineers Greg Fitzgerald and Stephen Akridge.

– TRON aims to create a particularly low-cost content sharing platform and claims to have a faster network and cheaper transaction rates than Bitcoin or Ethereum. For example, transactions are free for the first 1,500 bytes per day. TRON is based on the principle of Delegated Proof of Stake (DPoS). It is thus said to be more energy efficient and faster than proof-of-work or proof-of-stake models. The platform was founded in Singapore in 2017 by Justin Sun, a Chinese millionaire and successful serial entrepreneur. Industry insiders often see it as the blockchain for Asia. Network transactions on TRON now surpass those on Bitcoin, Ethereum, and Polkadot many times over.

– Polkadot is a proof-of-stake (PoS) blockchain protocol, its main feature is its interoperability: It allows other decentralised blockchain networks to collaborate seamlessly and at scale. It was founded in 2017 by Dr. Gavin Wood, co-founder of Ethereum and creator of the smart contract language Solidity as an improved version of Ethereum.

Polkadot is effectively considered an ecosystem of blockchains.

 “Solana has grown remarkably and became an institutionally investable asset. We are excited for VanEck’s Solana ETP launch which creates greater access to and more participation in the Solana ecosystem,” said Ramnik Arora Head of Product at FTX.

 “The listing of the VanEck Vectors TRON ETN, on the heels of Bitcoin and Ether, is a testament to TRON’s robust crypto ecosystem and its successful drive to expand our global roadmap,” said Justin Sun, founder of the TRON Foundation.

 “Ethereum and Bitcoin, as the two largest cryptocurrencies, are admittedly strongly established in the market. Because of their low correlation to other asset classes, they also represent good opportunities to diversify one’s portfolio,” Rozemuller adds. “But the market continues to be in flux: In total, there are around 10,000 different cryptocurrencies and no one knows which will be the most important in ten years.” Rozemuller draws parallels with the mobile phone market: “Who would have thought in the 90s that Nokia and Blackberry, for example, would one day lose such importance? Investors should therefore be given the opportunity to invest broadly in digital assets as well. We’re going to address that now.”

VanEck Vectors
Polkadot ETN

VanEck Vectors
Solana ETN

VanEck Vectors
TRON ETN
Index name MVIS CryptoCompare
Polkadot VWAP Close
Index

MVIS CryptoCompare
Solana VWAP Close
Index

MVIS CryptoCompare
TRON VWAP Close
Index
ISIN DE000A3GSUC5 DE000A3GSUD3 DE000A3GSUE1
Issuer VanEck ETP AG VanEck ETP AG VanEck ETP AG
Market maker Flow Traders B.V. Flow Traders B.V. Flow Traders B.V.
Authorised participants Flow Traders B.V.
Jane Street Financial
Ltd.
Flow Traders B.V.
Jane Street Financial
Ltd.
Flow Traders B.V.
Jane Street Financial
Ltd.
Company headquarters Liechtenstein Liechtenstein Liechtenstein
Listing currency EUR EUR EUR
Base currency USD USD USD
Index provider MV Index Solutions MV Index Solutions MV Index Solutions
Product structure Physically replicating Physically replicating Physically replicating
Total expense ratio
(TER)
1.50% 1.50% 1.50%
Appropriation of
earnings
Reinvested income Reinvested income Reinvested income

Source: ETFWorld

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