VanEck has introduced a new Exchange Traded Note (ETN) in Europe that is linked to the PYTH token. This ETN allows investors in 15 European countries to gain exposure to the Pyth Network without the need to directly purchase or manage cryptocurrency.
The VanEck Pyth ETN tracks the MarketVector Pyth Network VWAP Close Index, which closely follows the price movements of the PYTH token. It will be listed on prominent exchanges such as Euronext Amsterdam and Euronext Paris. The ETN is fully collateralized and the underlying assets are securely stored in cold storage by Bank Frick, a regulated custodian based in Liechtenstein. The expense ratio for this product is set at 1.5%, making it competitive in the regulated digital asset market.
The Pyth Network is a decentralized oracle protocol that allows smart contracts to access real-world data and perform secure off-chain computations. The PYTH token is essential for the network's operations and transactions.
The VanEck Pyth ETN provides a regulated and secure way for investors to engage with the Pyth Network and the cryptocurrency market. This reflects the increasing trend of traditional investment firms embracing digital assets and blockchain technology to meet investor demands.
VanEck's launch of the Pyth ETN is part of its strategy to expand its digital asset offerings in Europe. The firm has previously introduced staking on its Solana ETN and has been involved in the creation of Bitcoin and Ethereum ETFs. VanEck has also filed a proposal for a Solana ETF with the U.S. Securities and Exchange Commission. This expansion demonstrates VanEck's recognition of the growing interest in digital assets and the need for regulated investment products that cater to both traditional and modern investors.
The VanEck Pyth ETN and similar products are expected to bridge the gap between traditional finance and cryptocurrencies as the digital finance landscape continues to evolve.