VanEck, a global investment manager, has been trying to get the US SEC to approve of its Bitcoin ETF (Exchange Traded Fund) plans for years now. However, after being turned down time and time again, the company started getting more into ETNs (Exchange Traded Notes), which.
So far, it had a lot more success with this one, and it already has ETNs for Bitcoin, Ethereum, Solana, Polkadot, as well as Tron. However, as of two days ago, December 16th, the company added two new products tied to two other major blockchains — Polygon and Avalanche.
VanEck launches two more crypto ETNs
VanEck revealed its two new products on Twitter, saying that it has decided to expand its crypto investment offering with two new ETNs on crypto platforms Avalanche and Polygon. Naturally, this means that investors will be able to gain exposure to Avalanche’s AVAX and Polygon’s MATIC. Best of all, they can do it without having to buy the assets and actually own them.
VanEck expands its #crypto investment offering with two new ETNs on crypto platforms #Avalanche and #Polygon. More information on https://t.co/mO3qOHWBGX and https://t.co/IUf67GSBUV. pic.twitter.com/lkzHgza813
— VanEck Europe (@vaneck_eu) December 16, 2021
This approach has always been more agreeable with institutional investors who are well familiar with the matters of trading, but not as much with securing and managing their own coins. And, purchasing coins only to have them stolen in a hack or potentially confiscated in case of unfavorable regulations is not something that any institutional player is willing to risk.
However, when it comes to official exchange-traded products, they are more than willing to take their chances and use volatility to their advantage, since they are familiar with all the rules and comfortable in that environment.
About VPOL and VAVA
Now, the VanEck Vectors Polygon ETN (VPOL) is fully collateralized, and it allows investors to invest in MATIC token, the network’s native cryptocurrency. The ETN provides investors with direct exposure to the underlying asset, and it is entirely backed by Polygon. Not only that but the coins are safely stored away in a cold storage, meaning that they cannot be accessed by bad actors even in case of a hack.
As for the other product, it is officially called the VanEck Vectors Avalanche ETN (VAVA), and it works in pretty much the same way. But, the company described is unique due to its light hardware specs and extremely fast speeds, which have been extremely sought after in the blockchain industry as of late. In fact, Avalanche’s speed made it one of the go-to projects for all those who are seeking an alternative to Ethereum.
Crypto ETNs thrive while ETFs are still out of the question
The two products come as only the latest of Exchange-Traded Products that were launched by major investment companies in the last several months. In fact, companies launching these products has become something of a trend, and it is expanding throughout the world. Only a few days ago, a financial company called 21Shares — headquartered in Switzerland — announced the listing of Bitcoin and Ethereum ETNs on Nasdaq Stockholm.
Moves like that are likely to continue happening as time goes by, and the traditional finance industry becomes more comfortable and demanding of cryptocurrency-related products.
So, while VanEck had no luck with Bitcoin ETFs, getting turned down by the SEC over and over, its ETN-related efforts have had a lot more luck. The company might get its Bitcoin ETF someday, but until then, every move that brings crypto products and makes them available to institutions in a form that they find agreeable is another small step towards reaching mass adoption.
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