US-based asset management company VanEck has recently launched three Exchange Traded Notes (ETNs) tracking native tokens of the Algorand blockchain, Bahamian-based cryptocurrency exchange platform, FTX and blockchain protocol, Terra respectively.
The Algorand (VALG), VanEck FTX (VFTX), and VanEck Terra (VLUN) launched for European clients represents another move by the firm to promote investments in the crypto space.
ETNs will track the performance of their underlying tokens from the America-based MicroVision (MVIS) company, a subsidiary of VanEck that offers vital and latest information about assets such as their prices and so on.
While there are already similar products on the market tracking Terra (LUNA) and Algorand (ALGO), VanEck FTX (VFTX) is notably the first exchange-traded product tracking the performance of FTX’s booming native token.
Not the First of its Kind
The latest development by VanEck is just one of several ETNs that the asset manager has successfully launched over the last few years. ETNs specifically allow investors to get exposure to the crypto market without having to hold the underlying assets.
In November 2020, Coinfomania reported the launch of the company’s Bitcoin ETN, which allows investors within the eurozone to directly speculate BTC’s price movement without directly purchasing the asset. VanEck listed the product on the German stock exchange, Deutsche Böerse Xetra, making it available to clients in some European nations.
U.S. Bitcoin ETF still pending
Although VanEck has successfully launched a reasonable number of ETNs on its platform, the asset manager has not recorded a similar feat in the area of Exchange-traded Funds (ETFs).
The last couple of years have seen the United States Securities Exchange Commission (SEC) repeatedly denying VanEck’s applications to launch a Bitcoin and/or Ethereum ETF. The asset manager has however not relented as it continues to submit and withdraw these filings from the SEC.
Taking another approach early last year, VanEck decided to submit an application for a spot bitcoin ETF application that will be listed on the Chicago Board Options Exchange (CBOE). After reviewing the application for eight months, the SEC still disapproved of the proposal for stated reasons.