The American asset management company VanEck announced the launch of exchange-traded index bonds (ETN) for bitcoin on the Xentra platform of the German stock exchange Deutsche Börse.
VanEck has previously repeatedly submitted an application to the US Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) for bitcoin, but after multiple postponements of the decision, the firm decided to withdraw the application. Thus, the company’s customers were left without access to bitcoin.
However, with the launch of ETN on the German stock exchange, VanEck customers have gained access to bitcoin without having to buy the first cryptocurrency themselves. The price of the ETN will correspond to the bitcoin exchange rate, and the exchange product itself is backed by BTC. The BankFrick custodial service will store bitcoins to secure the ETN.
“Bitcoin’s low correlation with other assets makes it an excellent choice for portfolio diversification. With our VanEck Vectors Bitcoin ETN product, we offer investors the opportunity to take advantage of bitcoin, ” said Martijn Rozemuller, Head of Business in Europe at VanEck.
Earlier, VanEck analysts compared the volatility of bitcoin with a similar indicator of stocks that are included in the S&P 500 stock index. It turned out that the first cryptocurrency is less volatile than the 112 companies included in the S&P 500.