ETN is VanEck’s latest offering focused on smart contracts, a segment of the digital assets market that the firm has researched extensively and believes is compelling for the future of finance
Leading global asset manager VanEck is today celebrating the growth of its smart contracts investment lineup, as it launches a new ETN in the European marketplace focusing on leading smart contract digital assets. The firm earlier this year launched the VanEck Smart Contract Leaders Fund in the U.S.
This new ETN provides a simple, bundled investment in five of today’s most important smart contract applications, including Ethereum, Solana, Cardano, Polkadot and TRON. No single coin may make up more than 30% of the ETN’s holdings at any given time, ensuring diversification across smart contract leaders.
“Smart contracts represent a crucial component of the decentralized finance universe and are already reshaping numerous corners of the traditional finance world as well,” said Matthew Sigel, Head of Digital Assets Research with VanEck. “Our digital assets investment line-up offers investors a powerful tool for adding smart contract leaders exposure to their portfolios, without having to go ‘all in’ on a single cryptocurrency.”
The lineup of VanEck European-listed digital asset ETNs includes notes that provide exposure to the spot prices of:
- FTX Token, and
Additionally, VanEck has continued to aggressively build out its lineup of digital assets-focused offerings in the U.S. In addition to the Smart Contract Leaders Fund, the firm has introduced a handful of new digital assets Limited Partnerships for institutions and accredited investors, including vehicles focused on Bitcoin and income generation from the digital asset ecosystem. The firm also has a suite of U.S.-listed ETFs that includes funds focused on companies that are driving innovation and adoption in the digital assets economy, digital assets miners, and actively managed exposure to bitcoin futures.
VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.
Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of March 31, 2022, VanEck managed approximately $85.5 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.
Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.
The VanEck Smart Contract Leaders Fund is not an investment company registered under the Investment Company Act of 1940, and therefore is not subject to the same regulatory requirements as mutual funds or ETFs registered under the Investment Company Act of 1940. The Fund is not a commodity pool for purposes of the Commodity Exchange Act. Before making an investment decision, you should carefully consider the risk factors and other information included in the Private Placement Memorandum.
The Fund is available to Qualified Purchasers Only. Please carefully read the Private Placement Memorandum before investing. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. The Fund has no operating history and involves a significant degree of risk. There is no guarantee the Fund will achieve its investment objective and investors may lose their entire investment. The Fund is not suitable for all investors. Past performance is not a guarantee of future results.
The Partnership's investment program is speculative and entails substantial risks. There can be no assurance that the Partnership's investment objective will be achieved.
An investment in the Fund is subject to risks which include among others, risks associated with cryptocurrencies, smart contracts, complex software and programming, loss or theft of fund assets, Blockchain miners or validators, miners ceasing to mine blocks due to lack of incentive, development or acceptance of blockchain networks and assets, changes in the governance of a cryptocurrency blockchain network, long-term viability of cryptocurrencies, networks scaling challenges, concentrated ownership of digital assets, security threats, volatile price fluctuations, irreversible transactions, shallow trade volume, extreme hoarding, low liquidity and high bankruptcy risk, unsecure local storage sites, malware and data loss, public or third-party blockchain, inaccurate valuation, emergence or growth of other cryptocurrencies and/or methods of investing in cryptocurrencies, temporary or permanent “forks”, lack of banking services, geopolitical events, lack of the benefits from forks or “airdrops”, lack of regulatory protections and future regulatory developments could affect the viability and expansion of the use of the Fund.
Important Information Regarding Cryptocurrencies.
The securities/ financial instruments discussed in this material may not be appropriate for all investors. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security/financial instrument, or to participate in any trading strategy.
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Investing in cryptocurrencies, such as Bitcoin, comes with a number of risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. There is no assurance that a person who accepts a cryptocurrency as payment today will continue to do so in the future.
Investors should conduct extensive research into the legitimacy of each individual cryptocurrency, including its platform, before investing. The features, functions, characteristics, operation, use and other properties of the specific cryptocurrency may be complex, technical, or difficult to understand or evaluate. The cryptocurrency may be vulnerable to attacks on the security, integrity or operation, including attacks using computing power sufficient to overwhelm the normal operation of the cryptocurrency’s blockchain or other underlying technology. Some cryptocurrency transactions will be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that a transaction may have been initiated.
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There may be risks posed by the lack of regulation for cryptocurrencies and any future regulatory developments could affect the viability and expansion of the use of cryptocurrencies. Investors should conduct extensive research before investing in cryptocurrencies.
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Chris Sullivan/Julia Stoll