VanEck Crypto Leaders ETN
- Invest in the largest and most liquid cryptocurrencies
- Dynamic rebalancing to keep up with the changing market
- Tradeable on regulated stock exchanges
- Fully collateralized
- 1.5% total expense ratio
ETN Details
ETN Details
Basis-Ticker: VTOPISIN: DE000A3GWEU3
WKN: A3GWEU
TER: 1.50%
AUM: $5.3M (Data as of 03/03/2023)
Lower risk
Typically lower rewardHigher risk
Typically higher reward1
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Risk: You may lose money up to the total loss of your investment due to Emerging Markets Risk and Risk of investing in smaller companies as described in the Main Risk Factors, KID and prospectus.
What are the Crypto Leaders
The Digital Future of Money & Finance
Cryptocurrencies are digital currencies backed by secure cryptographic systems. They are quickly growing in number and use, facilitating cheaper and faster value transfers. Cryptocurrencies are backed by blockchain technology, the same technology that’s behind the Metaverse and Web3, and is destined to disrupt industries like traditional finance and social media.. VanEck’s Crypto Leaders ETN gives you a way to invest in the crypto currencies of tomorrow.
Components of the VanEck Crypto Leaders ETN
Source: VanEck.com, data as of 31/03/2023. Composition is subject to change.
Backing the full range of leading crypto currencies
Are you a cryptocurrency expert? Do you have a clear idea of which crypto currencies will become most widely used? If not, you can invest in this ETN that gives you access to a range of leading cryptocurrencies, dynamically adjusted to include potential winners. This allows you to back the growth of the broad cryptocurrency market, rather than the ups and downs of a single coin.
Why Invest?
Cryptocurrency’s use has been growing and is at the edge of potential mass scale adoption. Our ETN offers a way to invest across the breadth of the market, as newer currencies gain ground against Bitcoin, the original currency.
New Cryptocurrencies Take Market Share from Bitcoin
Source: Messari. Data as of 9 August 2022.
For investors looking to profit from the evolution of cryptocurrencies, our ETN offers three distinct advantages:
Why Invest in Crypto?
Cryptocurrencies Offer a Variety of Use Cases
People who don’t understand the need for cryptocurrencies usually just don’t see the use-cases. What can cryptocurrencies do besides transacting value and data on a global scale?
- Cryptocurrencies are usually needed to use the network which creates a continuous demand for that currency. The transaction fees are paid out to those who help validate transactions. Cryptocurrency is the highway, the transaction fee is the toll.
- Additionally, cryptocurrency owners can earn yield through staking programs by providing infrastructure to network users.
- The value of the cryptocurrency is the discounted value of its future cash flows.
- Just like gold, currencies or other assets, cryptocurrencies can be retrieved and exchanged in the future, hence conserving value over the long term.
- Unlike gold, cryptocurrencies have a capped supply which suggests that they may be a better store of value than gold.
- In times of (hyper-)inflation, cryptocurrencies may become a safe-haven. Evidence of this can be found in countries currently suffering from inflation.
- In Proof-of-stake based cryptocurrencies, the native token represents ownership of the network. Token holders may participate in governance by voting for proposals and guiding the path of the network.
- Ownership rights can be exercised, delegated or capitalized on by governance mechanisms built on the network. Active participation is usually rewarded, which incentivizes a strong community to be formed.
- The model behind cryptocurrencies allows for anything that can be owned by a single person, both digitally and physically, can now be owned by a larger number of people.
- The token represents a claim on fractional ownership, revenue or interest that the object generates.
- Tokenisation allows liquidity to flow into industries that suffer from liquidity problems enabling new opportunities of growth for those industries.
- Cryptocurrencies have the potential, without the need of intermediaries, central banks or traditional fiat currency, to become a universal reserve currency.
- Cryptocurrencies posses qualities that enable faster settlement even in a cross-border and cross-currency environment.
- Cryptocurrencies have a predictable and transparent monetary policy controlled by the protocol and not by central banks.
- The ability to provide cash-like privacy in a digital form on global scale without censorship.
Crypto Leaders ETN Benefits
Crypto Leaders ETN is Simple and Reliable
VanEck gives you exposure to Crypto ETN without the hassle and operational risk of private keys and unverified exchanges. In summary, Ethereum ETN by VanEck offers a number of significant advantages:
- Crypto deposited in state-of-the-art cold storage1
- At Bank Frick & Co. AG, a custodian regulated under the “Law on Tokens and Trusted Technology Service Providers” ( “Blockchain Act”) and a holder of a “TT Token Depositary” license
- Insurance (up to certain level)
1Setup in which private keys are stored in an environment not connected to the internet, in order to reduce risk of hacking.
Every Euro invested into a Crypto ETN by VanEck will be used to buy the underlying cryptocurrencies of the basket.
- Fully collateralized by physically buying leading cryptocurrencies
- No lending of Crypto
- No use of derivatives
Crypto ETN can be bought/sold like a stock, which brings the following advantages:
- Central clearing reduces counterparty risk in settlement of transactions
- Transparency of issuer and investor documents
- Indicative net asset values (without excessive premiums or discounts)
- Sponsors/market makers enhance trading liquidity
- No need for private keys or to store digital assets on a wallet
- Can be integrated into your investment portfolio
Only 1.5% annual all-in fees, making it one of the least expensive products of its kind.
Key Documents and Links
Main Risk Factors of the Crypto Leaders ETN
DeDespite all the hype, digital assets are a highly risky investment. Below are key risk factors that need to be considered before making an investment in Crypto Leaders ETN.
The trading prices of many digital assets have experienced extreme volatility in recent periods and may well continue to do so. Digital assets were only introduced within the past decade and regulatory clarity remains elusive in many jurisdictions. Digital assets' value depends on such regulation remaining favorable, as well with the technological capabilities, the development of protocol networks, competition from other digital asset networks and from forks. Volatility can be strongly amplified by transactions from speculative investors, hedge funds and other large investors. You may experience losses if you need to sell your Shares at a time when the price of the underlying digital asset is lower than it was when you made your prior investment. Even if you are able to hold Shares for the long-term, your Shares may never generate a profit. This is a risk factor to take into account before investing in a Crypto Leaders ETN.
If the currency of the Product differs from the currency you invest in, your final return depends on the exchange rate between your investment currency and the currency of the Product. That is another factor to consider when investing in a Crypto Leaders ETN.
Trading venues and systems used by market participants to trade crypto assets may be subject to hacking and could result in loss of crypto assets. This is a further risk factor to consider before investing in a Crypto Leaders ETN.