VanEck Launches Its First Multi-Token Crypto Fund

On Monday, VanEck, a financial institution with nearly $82 billion in assets, manages exchange-traded funds (ETFs), mutual funds and institutional accounts, Announce Launched its first cryptocurrency fund. The fund is listed as an exchange-traded note (ETN) on Deutsche Börse Xetra and six Swiss exchanges and holds bitcoin (Bitcoin), Ethereum (Ethereum), polka dot(point), Solana (Sol), Tron (TRX), Avalanche (AVAX) and polygons (MATIC).

Gijs Koning, co-head of VanEck Europe, elaborated on why it is important for the company to promote investment in digital currencies:

“In early 2017, we determined that digital assets could provide an alternative store of value to currencies and gold, as well as a range of technological solutions that could reduce costs in the payments and investment industries.”

While VanEck’s cryptocurrency financial products are gaining popularity in Europe, they face regulatory hurdles in the U.S. The company’s offerings are limited to private digital currency funds for institutional investors, and are limited to private digital currency funds that leverage blockchain technology. A stock-based ETF made up of companies.

In November last year, the U.S. Securities and Exchange Commission Refuse VanEck’s Bitcoin Spot ETF application. In explaining the decision, the regulator cited that the underlying exchange responsible for listing the ETF, Cboe BZX, does not have a proper “supervision sharing agreement” with the market that trades the underlying asset. [of Bitcoin]. “The SEC was Deny with the same rules Fidelity’s Wise Origin Bitcoin Trust Spot ETF from the previous week. ProShares Bitcoin Strategy ETF and Valkyrie Bitcoin Strategy ETF Two ETFs Received SEC Approval In Part Because They Track Bitcoin’s Price Regulated Bitcoin Futures Contractsrather than the spot price averaged from a number of exchanges.