US-based wealth management firm VanEck recently launched three Exchange Traded Notes (ETNs) that track native tokens from the Algorand blockchain, the Bahamian cryptocurrency exchange platform, FTX and the Terra blockchain protocol, respectively.
The Algorand (VALG), VanEck FTX (VFTX) and VanEck Terra (VLUN) launched for European customers represents another move by the company to promote investments in the crypto space.
The ETNs track the performance of their underlying tokens from US-based company MicroVision (MVIS), a subsidiary of VanEck that provides essential and latest information on assets such as their prices, etc.
Notably, while there are already similar products on the market that track Terra (LUNA) and Algorand (ALGO), VanEck FTX (VFTX) is the first exchange-traded product to track the performance of FTX’s thriving native token.
Not the first of its kind
VanEck’s latest development is just one of many ETNs that the asset manager has successfully launched in recent years. ETNs allow investors to be specifically exposed to the crypto market without having to hold the underlying assets.
In November 2020, Coinfomania reported the: launch of the company’s Bitcoin ETN, allowing investors within the Eurozone to directly speculate on BTC’s price movement without directly buying the asset. VanEck has listed the product on the German stock exchange, Deutsche Böerse Xetra, making it available to customers in some European countries
US Bitcoin ETF still pending
While VanEck has successfully launched a fair number of ETNs on its platform, the asset manager has not achieved a comparable performance in Exchange-traded Funds (ETFs).
In recent years, the United States Securities Exchange Commission (SEC) has repeatedly rejected VanEck’s applications to launch a Bitcoin and/or Ethereum ETF. However, the asset manager has not relented as it continues to file and withdraw these filings with the SEC.
Taking a different approach early last year, VanEck decided to apply for a spot bitcoin ETF application that will be listed on the Chicago Board Options Exchange (CBOE). After eight months of reviewing the filing, the SEC still has rejected on the proposal for the reasons stated.