Asset management company VanEck Europe has launched its first exchange-traded note (ETN) physically backed by Bitcoin, according to a tweet from its head of digital assets, Gabor Gurbacs.
VanEck's VBTC goes live on Deutsche Boerse
In a tweet about the ETN launch, Gurbacs stated that this has been the company's priority task recently.
The Bitcoin ETN (VBTC), the company launched on Deutsche Boerse, is linked to the MVIS CryptoCompare Bitcoin VWAP Close index and tracks it. This index is closely linked to the Bitcoin exchange rate.
The total expense ratio of the launched ETN is two percent.
VanEck's new partner, regulated by Liechtenstein authorities, Bank Frick crypto custodian provides cold storage for Bitcoin used by VanEck.
MV Index Solutions licenses its index to VanEck
MV Index Solutions has published an article saying that it has granted VanEck a license to use its MVIS CryptoCompare Bitcoin VWAP Close index (MVBTCV) as a basis for its Bitcoin ETN.
This exchange-traded note will allow investors to profit from Bitcoin performance without having to actually acquire BTC.
To purchase this ETH, a customer does not require a crypto wallet, where BTC is held separately from the rest of the blockchain assets in the portfolio.
The index measures the performance of a portfolio invested in BTC, and its closing value is based on an hourly VWAP price.