Ethereum is an open source blockchain platform for decentralized applications (DApps) and smart contracts.

VanEck's Ethereum ETN allows investors to gain exposure to the cryptocurrency market through a regulated and tradable instrument.

What are the performance benefits of the ETN?

The ETN offers the potential for higher rewards with typically higher risk compared to traditional investments.

Ethereum ETN

Future of Financial Services and Products

VanEck Ethereum ETN

Exposure to the first and largest smart-contract platform
100% collateralized with ETH in cold storage at a regulated custodian
Tradeable on regulated stock exchanges
Earn up to 5% additional yield through staking rewards* with the VanEck Ethereum ETN

ETN-Details

Basis-Ticker: VETH
ISIN: DE000A3GPSP7

TER: 1.00%
AUM: $152.1 M (as of 25-07-2024)

Lower risk

Typically lower reward

Higher risk

Typically higher reward

Risk: You may lose money up to the total loss of your investment due to the extreme volatility of this asset class and the Main Risk Factors described below and additional risks described in the sales prospectus. *Staking rewards are not guaranteed.

What is Staking

Ethereum is a decentralized, open-source blockchain platform that enables smart contract functionality. It allows developers to build and deploy decentralized applications (DApps) on its network. Ether (ETH) is the native cryptocurrency of Ethereum, used to compensate participants who perform computations and validate transactions.

Proof-of-Stake (PoS) is a consensus mechanism used by some blockchain networks, including Ethereum, to achieve agreement on the state of the network.

How Staking Works
Difference between Proof-of-Stake and Proof-of-Work
Benefits of Staking

Here's how it works:

Validators lock up a certain amount of cryptocurrency as stake.
Validators are chosen to create new blocks and validate transactions.
Validators who successfully validate transactions and create new blocks are rewarded.
Validators who behave maliciously or try to attack the network risk losing their stake.

Resource Requirement: Proof-of-Work requires validators (miners) to expend computational resources (electricity and hardware) to solve complex mathematical puzzles, whereas Proof-of-Stake requires validators to stake cryptocurrency.
Security: Both mechanisms aim to secure the network, but they do so in different ways. Proof-of-Work relies on the computational power of miners to secure the network, while Proof-of-Stake relies on the economic incentives of validators to maintain the network's integrity.
Environmental Impact: Proof-of-Work is criticized for its high energy consumption, as mining requires significant computational power. Proof-of-Stake is considered to be more energy-efficient because it doesn't require intense computational calculations.
Decentralization: Both mechanisms have implications for decentralization. Some argue that Proof-of-Work tends to centralize around miners with significant resources, while Proof-of-Stake may lead to centralization among validators with large stakes. However, PoS protocols often implement mechanisms to mitigate centralization risks, such as delegation or slashing.

In summary, Ethereum is a blockchain platform that supports smart contracts, and it transitioned from a Proof-of-Work to a Proof-of-Stake consensus mechanism in 2022, where validators are chosen based on the amount of cryptocurrency they hold and are willing to stake, rather than the computational power they provide.

Earn up to 5% Additional Yield* with the VanEck Ethereum ETN

The Ethereum Staking Yield is by many considered to be like the “risk-free” rate of Crypto. Staking is the use of capital at risk in the form of locked tokens to secure the network, earn yield for providing your resource. The locked tokens represent a vote that contributes in distributed consensus and execution of transactions.

Earn passive income through the VanEck Ethereum ETN
Access to staking yield with a product that trades like an ETF
Contribute to the network’s security, a win-win for the investor and the decentralized community

*Staking rewards are not guaranteed.

How does Staking work in Practice for the VanEck Ethereum ETN?

Staking is now enabled for the VanEck Ethereum ETN. What does this mean for you as investor and what do you need to do to earn additional rewards? Here are the key features of how staking is done through the VanEck Ethereum ETN.

The staking methods we employ are fully non-custodial, there is no lending risk involved.
Investors of the Ethereum ETN do not need to take any action, if rewards are paid out, they will be accounted for in the coin entitlement of the ETN.
Any staking rewards will be included in the end of day NAV on a daily basis with a cut-off point at 4pm CET.

Frequently Asked Questions:

Costs of Staking

Risk Management Approach

Staking an ETN in Practice

Adding an Ethereum ETN to a Portfolio

Even a small investment in an Ethereum ETN would have improved a portfolio’s performance over the last few years. This exposure can be gained through VanEck's Ethereum ETN, in a similar way to an ETF.

60% Equities / 40% Bonds Portfolio
Add 1% Ethereum
Add 3% Ethereum

60% Equities / 40% Bonds Portfolio

Add 1% Ethereum

Add 3% Ethereum

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.