invezz.com
While the crypto industry’s exchange-traded products are scarce in the US due to the regulators’ inability to bring proper laws that would govern these products and companies that are issuing them, the situation is getting better in other countries around the world. The crypto market is expanding, getting more and more products, and making the industry’s ecosystem quite colorful and diverse.
Most recently, German stock market operator, Deutsche Boerse, announced its decision to dive even deeper into the crypto derivatives market with the launch of three new ETNs (Exchange-Traded Notes) by VanEck. The three in question include the likes of Polkadot (DOT/USD), TRON (TRX/USD), and Solana (SOL/USD). All three ETNs are now available on Xetra, as well as on the Frankfurt Stock Exchange.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
With these new listings, Deutsche Boerse’s crypto ETN offerings have reached the next level. Previously, the company focused on the biggest and most commonly accepted crypto assets, including the likes of Bitcoin itself, as well as Ethereum, Bitcoin Cash, and Litecoin. Now, however, due to the growing demand for some of the most popular chains and coins, the company decided to delve deeper into the altcoin market.
Institutional investors are more comfortable with ETNs
The choice of assets that the company selected is also fairly easy to understand. After all, Polkadot and Solana have been among the biggest Ethereum alternatives in recent times, while TRON has been a popular project that aimed to revolutionize the entertainment industry ever since it went live.
All three deal in smart contracts and different sectors of the crypto industry, such as NFTs and DeFi, so it makes sense that they would be among the more popular and sought-after assets.
Deutsche Boerse announced that all ETNs listed on Xetra are physically collateralized, and listed on the Regulated Market of the Frankfurt Stock Exchange. Investors can purchase crypto ETNs similar to how they would buy shares or ETFs. In other words, there is no need for crypto wallets or investments into cryptos themselves. This makes risks somewhat lower for institutional investors, who have never feared volatility as much as they did assets that they don’t understand how to handle and manage.
VanEck’s own announcement further said that new products will further open the future market of cryptocurrencies for European investors.