VanEck has launched three crypto exchange-traded notes (ETNs) offering exposure to algorand, terra and FTX cryptocurrencies.
The VanEck Algorand (VGND) VanEck Terra ETN (VLNA) and VanEck FTX ETN (VFTX) will list on the Deutsche Boerse on Tuesday with total expense ratios (TERs) of 1.5%.
The VanEck Avalanche ETN (VAVA) and VanEck Polygon ETN (VPOL) will also list on the German exchange with the same fee, having previously listed on the SIX Swiss Exchange.
The ETPs track indices for their respective digital assets provided by MVIS, VanEck’s in-house indexing arm.
Algorand was founded in 2017 with a consensus algorithm based on a proof-of-stake blockchain and Byzantine agreement protocol. Its platform supports smart contracts and its native cryptocurrency, ALGO.
Terra was created by Terraform labs in 2018 and based on a proof-of-stake blockchain, it is the world’s second-largest decentralised finance (DeFi) protocol after ethereum, with a market cap of $29.8bn.
VFTX will be the world’s first exchange-traded product to track the FTX token, the native token of FTX, which is a cryptocurrency derivatives exchange offering futures, leveraged tokens and over-the-counter trading.
Martijn Rozemuller (pictured), CEO at VanEck Europe, commented: “As the top dog in the crypto market, the bitcoin ETN is a core part of our line-up. However, younger platforms in particular offer many advantages, such as lower transaction costs or faster processes.
“In addition, cryptocurrencies are a good way to diversify one's portfolio due to their low correlation to other asset classes.
“But the market continues to be in flux: There are now more than 10,000 different cryptocurrencies, and no one knows which networks will be the most important in ten years.”
The arrival of these three ETNs takes VanEck’s crypto offering to 10 strategies following the launch of polygon and avalanche ETNs last December and polkadot, solana and tron ETNs last September.