VanEck launches a trio of new crypto ETPs | ETF strategy


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VanEck unveiled three new crypto asset ETPs in Europe offering direct backed exposure to ALGO, LUNA and FTT, the native tokens that underpin the Algorand, Terra and FTX networks respectively.

VanEck now offers ten crypto-asset ETPs in Europe.

the VanEck Algorand ETN (VGND GY), VanEck Terra ETN (VLNA GY)and VanEck FTX ETN (VFTX GY) have been listed on Deutsche Borse Xetra in euros.

ETPs offer institutional investors easy access to underlying digital assets through liquid and regulated vehicles without the technical challenges of setting up private keys or crypto wallets.

VGND, VLNA, and VFTX are 100% “physically” backed by ALGO, LUNA, and FTT, respectively, providing direct exposure to the underlying cryptocurrencies with the added oversight, security, and liquidity inherent in the ETP structure.

Crypto holdings of ETPs are held in institutional-grade “cold storage” by Bank Frick, a Liechtenstein-based institution specializing in cross-finance.

Each FTE has an expense ratio of 1.50%.

The new listings expand VanEck’s suite of European crypto assets to ten products, with the remaining ETPs providing direct backed exposure to Bitcoin, Ethereum, Solana, Tron, Polkadot, Polygon, and Avalanche.

According to VanEck, the crypto assets selected as the basis of the company’s ETPs were chosen because they scored favorably on several criteria, including market capitalization, functionality, number of trades, exchange availability, track record and the development team.

Algorand

Algorand is a layer 1 blockchain solution that supports building decentralized applications.

Algorand was founded by Silvio Micali, an MIT professor and recipient of the Turing Prize in Computer Science, often referred to as the Nobel Prize in Computer Science.

With Algorand, Micali has developed a new “pure” proof-of-stake consensus mechanism that he says helps solve one of the most persistent problems facing cryptocurrencies: scalability.

With a total market capitalization of $5.2 billion, ALGO is currently ranked the 30th largest cryptocurrency in the world.

Earth

The Terra blockchain, which is capable of processing a transaction in just two seconds and up to 10,000 transactions per second, underpins a large decentralized finance (DeFi) ecosystem based on the issuance of algorithmically managed stablecoins.

Stablecoins are cryptocurrencies that are pegged to reserve assets such as major fiat currencies. They are commonly used in DeFi applications because they allow investors to generate a return on their crypto assets while mitigating the potential negative effects of market volatility.

Terra’s goal is to disrupt traditional finance by fulfilling all of an individual’s banking needs in one place.

LUNA performs two main functions on the Terra blockchain, verifying transactions and regulating Terra stable pegs via an arbitration mechanism.

With a market capitalization of $35.3 billion, LUNA is currently the ninth largest cryptocurrency in the world.

FTX

FTX is a leading crypto derivatives exchange offering futures, options, volatility products, and leveraged tokens. It is the third largest token exchange with a daily trading volume of over $2.5 billion.

FTT is an Ethereum-enabled token that forms the backbone of the FTX ecosystem, allowing users to post collateral against their derivative positions. It also allows for staking, trading fee rebates, and participation in community governance voting.

With a total market capitalization of $6.2 billion, FTT is currently the 27th largest cryptocurrency in the world.

About Meredith Campagna

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