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VanEck Launches Physically-Backed Bitcoin Product For European Investors

The European arm of investment management firm VanEck has announced the launch of a Bitcoin ETN, an investment product that is physically-settled in the popular cryptocurrency. 

According to an announcement today, the newly launched product will allow investors within the eurozone to directly speculate BTC’s price movement without directly purchasing the asset. 

The firm added that the Bitcoin ETN is currently listed on the German stock exchange, Deutsche Böerse Xetra, thus allowing investors to trade the asset alongside other regulated products on the platform. 

Contrary to the common practice of storing BTC in a blockchain wallet, VanEck noted that the storage of its ETN product is as “uncomplicated as trading in shares or ETFs.” 

Commenting on the development, Gabor Gurbacs, digital strategist at VanEck, said that launching an investment product backed by the popular cryptocurrency and listed on a major exchange has been a top priority for the firm. 

He added that: 

We hope to serve many clients and partners in Europe, Asia, and across the world using our innovative, investment-friendly, and regulatory-conscious access vehicles.

Also, VanEck guaranteed investors that its Bitcoin ETN is fully collateralized, as all funds invested in the product will be used to purchase BTC. 

By so doing, each ETN will represent a specific amount of BTC, the company said. 

Per the announcement, the product is currently available in selected European nations, including Germany, Netherland, Spain, Italy, United Kingdom, etc.  

Furthermore, VanEck said it has partnered with Liechtenstein-based crypto custodian, Bank Frick, to provide secured custody for all acquired BTC. 

U.S. SEC Rejects VanEck’s Bitcoin ETF Filing

Meanwhile, VanEck’s effort to launch a publicly traded-fund that tracks Bitcoin’s price movement in the United States had been constantly denied by the country’s Securities and Exchange Commission (SEC). 

Slamming the SEC, Gurbacs said earlier this year that the SEC has no legal or investment reasons to not allow such product within its shores because similar funds had been listed on major exchanges globally. 

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