As of today, three altcoins will be tradable on Deutsche Börse via ETN. VanEck brings for Tron (TRX), Solana (SOL) and Polkadot (DOT) the debut there.
Those interested in investing in cryptocurrencies but want to avoid using crypto exchanges can trade three new stocks on Deutsche Börse Xetra starting today (Tuesday). That’s because VanEck has listed so-called ETNs there for Tron (TRX), Polkadot (DOT) and Solana (SOL). These Exchange Traded Notes are basically debt securities, which in this case are backed by VanEck at the Liechtenstein bank Frick by the corresponding Altcoins. As early as November 2020, VanEck had first brought Bitcoin to the important trading venue Deutsche Börse in this way with ETNs and later had Ethereum (ETH) follow.
The exchange prospectuses for the crypto ETNs of VanEck can be found here and there investments in Polkadot, Tron and Solana are all rated with the highest risk level seven. Bitcoin (BTC), on the other hand, has already been downgraded to risk level six, according to VanEck. For the ETNs based on SOL, TRX and DOT, VanEck takes the U.S. dollar as the benchmark and 1.5 fees.
Brief background on Tron, Solana and Polkadot as ETNs.
Solana broke into the top ten most capitalized cryptocurrencies this summer after a wild rally. SOL focuses on use cases in the growth sectors of DeFi and NFTs. Most recently, a network outage in Solana weighed on the price curve. VanEck describes Solana as the “fastest blockchain platform” and sees opportunities for positive development in the rapid growth of the ecosystem around SOL.
Polkadot is seen by VanEck as the “next generation” of platforms for smart contracts. In particular, the concept of parachains at Polkadot justifies positive outlooks. DOT is also in the top ten most important cryptocurrencies by market capitalization.
The most surprising for experts is the VanEck Tron ETN. After all, TRX has currently dropped to 27th place among the most capitalized cryptocurrencies, and there are good arguments for doubts about the real decentralization of Tron. VanEck emphasizes the plus points of Tron as a platform for smart contracts and points to TRX’s strong base in Asia.
Conclusion: crypto ETNs from VanEck a solid alternative to crypto exchanges
With ETNs from VanEck, the regulated custody of the underlying cryptocurrencies inspires confidence, as does the Xetra trading venue. However, at 1.5 percent fees, the ancillary costs here for trading Polkadot, Solana and Tron are relatively high compared to crypto exchanges like Binance, and there are also tax intricacies to consider. But VanEck’s ETNs, for example, create an easy entry point for institutional investors as well, and the move to now track cryptocurrencies other than the top dogs Bitcoin and Ethereum remains noteworthy. Meanwhile, the crypto industry in the U.S. is hoping that after years of waiting, the regulatory authorities there will finally give the green light for Bitcoin ETFs.
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