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VanEck Launches Bitcoin-backed ETP in Germany

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VanEck has pushed out of the US into the European markets and, with favorable regulations, it expects to have a better embrace in the region where similar products are already available.

Investment management firm VanEck has successfully launched a bitcoin-backed Exchange Traded Product known as an Exchange Traded Note (ETN) on the Deutsche Borse Xetra exchange. According to a report by Funds Europe, the move by VanEck to launch the exchange-traded product (ETP) models that of other European Exchange Traded Fund Issuers who had made similar moves in the past.

According to the Funds Europe report, the VanEck ETP Bitcoin ETN has a total expense ratio of 2% and it will allow investors to gain exposure to Bitcoin (BTC) without having to purchase the premier digital currency themselves. “Today @vaneck_eu launched a #Bitcoin ETN. The ETN is physically-backed by Bitcoin and listed on Deutsche Böerse Xetra. Launching a Bitcoin ETP was a top priority for VanEck. We succeeded! VanEck hopes to serve many in Europe and Asia!” Gabor Gurbacs, VanEck’s digital asset strategist/director revealed in a tweet.

Gurbacs noted that the bitcoin-backed ETN is 100% physically backed meaning that any ETN invested in by an investor will be used to purchase the equivalent amount of Bitcoin. With professionally managed offerings, Gurbacs affirmed that the company’s ETN features transparent pricing with reliable investor protections.

The custody for the Bitcoins purchased through the VanEck ETP services will be offered by Liechtenstein-based crypto custodian Bank Frick. Frick will provide the Cold storage options for any deposited Bitcoin.

VanEck and Its Way to Bitcoin-Backed ETP Approval

The desire by VanEck to launch a bitcoin-backed ETP dates back to a few years ago when it made several attempts to launch the product in the US.

“Bringing to market a physical, fully-backed major exchange-listed bitcoin ETP was a top priority for our firm,” Gurbacs was quoted as saying. The United States Securities and Exchange Commission (SEC) has wielded its strong-arm into denying the VanEck the privilege of rolling out the product through a delay of crucial meetings and events where the decision to approve the application was to be made.

The haul has been a long one for VanEck. And the limited version of a Bitcoin exchange-traded fund which it launched as reported by Coinspeaker back in September 2019 has not seen so much success as it was only able to issue just 4 Bitcoins upon launch.

VanEck has pushed out of America into the European markets and with favorable regulations, it expects to have a better soft landing and embrace in Germany and the rest of Europe where similar products are already on offer.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.





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$45B DeFi market cap and soaring TVL suggest the best is yet to come

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The decentralized finance sector continues to charge full steam ahead as multiple tokens notch new all-time highs and the total value locked in DeFi protocols grows with the passing of each week.

Data from Messario shows projects like AAVE, Uniswap (UNI), SushiSwap (SUSHI) and Synthetix (SNX) have all rallied by double-digits, creating a positive feedback loop as more users engage with the protocols to yield farm and capitalize on flash loans.

DeFi asset performance. Source: Messari

As the price of Bitcoin (BTC) and Ether (ETH) reached new highs in recent months, the total value locked (TVL) in DeFi has risen as well, increasing optimism and engagement on the various DEXs and lending platforms. Data from CoinGecko shows that in the past 6 months the DeFi total market capitalization has grown to $45 billion.

Total market cap of all DeFi tokens. Source: CoinGecko

From Jan. 1 to Jan. 25, DeFi platforms have collectively seen the TVL rise from $15.6 billion to a record-high $26.1 billion.

In fact, according to DeFi Pulse, the total value locked across DeFi protocols increased from $21.49 billion to $26.173 billion in the past 4 days alone.

This sharp increase in TVL was helped by a $400 surge in the price of Ether from $1,053 on Jan. 21 to a new all-time high of $1,459 on Jan. 25, but Ether can’t account for all the gains as shown by the increasing number of DeFi tokens which are also securing new all-time highs.

Total value locked in DeFi. Source: Defi Pulse

Despite these impressive developments, the DeFi sector only accounts for just 4.6% of the total cryptocurrency market capitalization which currently stands at $976.6 billion.

Despite representing just a small sliver of the total crypto market, DeFi’s rapid growth suggests the sector is primed for explosive growth as cryptocurrency becomes more mainstream.