VanEck, the American investment company from New York, will launch two new cryptocurrency exchange-traded products (ETPs), or listed products, on the Euronext exchanges in Amsterdam and Prijs on June 1.
It concerns an investment product for bitcoin (BTC) and one for ethereum (ETH). These exchange-traded products allow investors to invest in the price of bitcoin or ether without having to buy and keep the crypto itself.
Both products are fully backed and Bank Frick of Liechtenstein will act as the custodian, or storage service, of the crypto.
“Bitcoin and Ethereum have firmly established themselves in the market as the two largest cryptocurrencies. Due to their low correlation with other asset classes, they offer an interesting opportunity to diversify one’s investment portfolio.”
Said Martijn Rozemuller, CEO of VanEck Europe. Such a VanEck product is already traded on the Xetra stock exchange of Deutsche Börse.
On the same day, 21Shares, formerly known as Amun, will also launch three crypto ETPs on Euronext Paris. One for bitcoin, one for ether and one for a “short bitcoin” ETP. 21Shares now has 14 ETPs listed on various European exchanges, including one for Polkadot (DOT).
All of these ETPs could potentially attract a large pool of new investors. Euronext is the largest exchange in Europe, larger than the London Stock Exchange (LSE) and Deutsche Börse. The Amsterdam and Paris exchanges are the largest exchanges of Euronext.
VanEck currently has two applications pending with the US Securities and Exchange Commission (SEC). One for a bitcoin ETF and an ether ETF.