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.
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.
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.
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.
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?
Lower risk: Typically lower reward
Higher risk: Typically higher reward
Despite 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.
For more information on risks, please see the “Risk Factors” section of the relevant ETN’s prospectus, available on www.vaneck.com.