Bitcoin News

VanEck Exchange Launches Its Bitcoin Backed ETP Product.

After surpassing many last years unsuccessfully lobbying to urge its exchange-traded fund, or ETF, approved by the U.S. SEC, investment management fund VanEck has finally launched a Bitcoin-backed ETP.

In line with a recent official update by digital asset strategist Gabor Gurbacs, the product is an exchange-traded note instead of an ETF and is listed not on a United States exchange, but Germany’s Deutsche Börse Xetra.

Rather than being a mutual fund, an ETN is actually certificate of indebtedness tracking a sometimes hard-to-access market, which during this instance is Bitcoin [BTC].

The VanEck Vectors Bitcoin ETN is 100% backed by physical Bitcoin and offers investors direct exposure to the Bitcoin market within the trusted format of other regulated exchange-listed products. Product manager Dominik Poiger added:

“Our Bitcoin ETN is fully collateralized. this suggests that the money invested within the ETN is really used to purchase Bitcoin. In this way, each ETN represents a particular amount of Bitcoin.”

The Bitcoin is going to be deposited and held in cold storage by Liechtenstein based crypto custodian Bank Frick.

VanEck put tons of effort into trying to influence the SEC to approve its Bitcoin ETF throughout the primary half of 2019, but to no avail, and therefore the Chicago Board Options Exchange withdrew the proposal earlier in September, a month before the final decision was due.

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