Investment management firm VanEck has finally launched a Bitcoin-backed exchange-traded product (ETP). The investment company opted for the ETP after failing to secure approval for its exchange-traded fund (ETF) from the US Securities and Exchange Commission (SEC).
On the 25th of November, VanEck digital asset strategist Gabor Gurbacs revealed details on the newly-launched product, stating that the ETP is listed on the Deutsche Borse Xetra in Germany. Instead of an ETF, the new product is an exchange-traded note (ETN). An ETN is largely a debt instrument that tracks a financial asset in the market, in this case – Bitcoin.
VanEck’s digital asset strategist mentioned Bank Frick as the custodian of the new product, saying that the custodian would hold the Bitcoin in “cold storage.” MV Index Solutions is the index provider for Bitcoin ETN.
Bank Frick’s head of fund and capital markets Raphael Haldner said:
“Thanks to our early market entry, we can demonstrate established and secure processes and extensive expertise.”
VanEck’s product manager Dominik Poiger also commented on the Bitcoin ETN:
“Our Bitcoin ETN is fully collateralized. This means that the money invested in the ETN is actually used to buy Bitcoin. In this way, each ETN represents a certain amount of Bitcoin.”
Image Credits: Pixabay
