VanEck has become the latest European ETF issuer to launch a bitcoin exchange-traded-note (ETN) on the Deutsche Boerse. The VanEck Vectors Bitcoin ETN (VBTC) is listed on the Xetra with a total expense ratio (TER) of 2%.
According to a press release, VBTC tracks the MVIS CryptoCompare Bitcoin VWAP Close index which is directly linked the price of bitcoin. Fully replicated, VanEck is partnering with Bank Frick, a crypto custodian regulated in Liechtenstein, where the bitcoin are held in ‘cold storage’.
Bitcoin ETPs are available to be launched on Germany’s Xetra after the cryptocurrency received approval from BaFin, the German financial regulator, earlier this year.
“Bringing to market a physical, fully-backed major exchange-listed bitcoin ETP was a top priority of our firm. 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.” – Gabor Gurbacs, Director of digital asset strategy at VanEck
This is the third bitcoin ETP to be listed on Xetra. ETC Group, which saw its bitcoin ETP pass $100m assets under management earlier this month, was the first issuer to list via HANetf in late June. ETC Group was shortly followed by crypto ETP issuer 21Shares in July after it listed the 21Shares Bitcoin ETP (ABTC).