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U.S.-based asset manager VanEck has gone live with a bitcoin exchange-traded note (ETN) on the Deutsche Boerse Xetra marketplace.

VanEck was one of a number of firms that were unsuccessful in their attempts to get a bitcoin exchange-traded fund listed in the U.S. Regulators repeated cited the risk of market manipulation and the lack of surveillance agreements among exchanges for their hesitation in approving such products. 

Investors can use the new VanEck product to gain exposure to bitcoin without having to purchase it themselves, according to a VanEck press release. The VanEck product, the company says, aims to mirror bitcoin’s performance. The ETN is physically backed by bitcoin.

“Bitcoin’s low correlation to other asset classes makes it an excellent way to contribute to the diversification of a portfolio,” Martijn Rozemuller, Head of Europe at VanEck, said in a statement. “With our VanEck Vectors Bitcoin ETN, we offer a product that allows investors to benefit from the performance of Bitcoin.”

VanEck is to partner with the crypto custodian Bank Frick to hold custody of the bitcoin tied to the ETN, according to ETF Stream. The German trading system Xetra filed the VanEck Vectors Bitcoin ETN (VBTC) with a total expense ratio of 2%.

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Quick Take

• The Block Research has analyzed 123 cryptocurrency exchanges (spot and derivatives) that either cater to specific regions of the world or operate internationally
• Roughly $1.5 billion in venture funding has been allocated to cryptocurrency exchanges across 200 investment deals since 2012
• In aggregate, roughly $1.1 billion has been spent over 15 deals involving purchasing a cryptocurrency exchange
• Digital Currency Group has been the most active investor in cryptocurrency exchanges with 19 total investments

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