VanEck launches Crypto Leaders ETP in Europe

Jan 31st, 2022 | By | Category: Alternatives / Multi-Asset

VanEck has expanded its suite of directly backed crypto ETPs in Europe with a new product providing diversified access to the largest and most liquid digital assets.

Gijs Koning, co-Head of VanEck Europe

Gijs Koning, co-Head of VanEck Europe.

The VanEck Crypto Leaders ETN has been listed on SIX Swiss Exchange in US dollars (VTOP SW) and Swiss francs (VTOPCHF SW) as well as on Deutsche Börse Xetra in euros (VT0P GY).

The ETP is linked to the MVIS CryptoCompare Crypto Leaders VWAP Close Index which includes crypto assets that are listed on at least one of the largest 15 cryptocurrency exchanges and satisfy liquidity and investability requirements.

Constituents are weighted by market value while capping the weight of any single asset at 30%.

At launch, the index contained seven crypto assets: Bitcoin, Ethereum, Polkadot, Solana, TRON, Avalanche, and Polygon.

The ETP is designed to offer institutional investors easy, diversified access to these leading crypto assets through a liquid, regulated vehicle without the technical challenges of setting up private keys or crypto wallets.

It uses full direct, so-called ‘physical’ replication with each ETP share being 100% collateralized by a corresponding investment in the underlying crypto assets which are stored using an institutional-grade, ‘cold storage’ custody solution provided by Bank Frick.

The ETP comes with an expense ratio of 1.50%.

Gijs Koning, co-Head of VanEck Europe, said: “We were first to market in Europe with many of these exposures because we’re believers in the transformative nature of the underlying technologies, and because providing exposure to transformative investments is at the core of our firm’s DNA. In early 2017, we determined that digital assets could provide a store of value alternative to currencies and gold, as well as a host of technology solutions that could bring down costs in the payments and investing industries.

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