Wealth manager Vaneck announced that he has expanded his exchange-traded note (ETN) offerings to support the polygon and the flood of tokens. The two ETNs follow five previously launched funds in Europe that allow investors to gain exposure to key digital assets.
Vaneck adds polygon and avalanche to his list of cryptocurrency ETNs
Vaneck announced the launch of two ETNs that leverage the polygon of crypto assets (MATIC) and avalanche (AVAX). The ETNs represent AVAX or MATIC shares and the funds are fully guaranteed. “Vaneck expands its crypto investment offering with two new ETNs on crypto platforms Avalanche and Polygon,” the wealth manager tweeted on December 16.
Avalanche and polygon were in significant demand this year and racked up massive gains for the year. Token Avalanche (AVAX) has seen its market capitalization join the world’s top ten digital assets in terms of overall valuation. Today, AVAX ranks ninth after increasing 3,509% from last year.
Polygon (MATIC) also increased significantly in value in 2021, with year-to-date gains of around 11.393%. MATIC is the fourteenth largest active crypto in terms of market capitalization today, which is around $ 15 billion. Both MATIC and AVAX are compatible with Ethereum, but they are also considered competitors of Ethereum.
Vaneck to Leverage Crypto Compare, Bank Frick’s MVIS Data to Custody Crypto Assets
The ETNs offered by Vaneck are like exchange-traded funds (ETFs), but the ETNs are considered unsecured debt securities. Vaneck tried to get his bitcoin (BTC) ETF approved by the US Securities and Exchange Commission this year, but the ETF was denied in mid-November.
Polygon and Avalanche ETNs use data from Crypto Compare MVIS to replicate the value and performance of each asset. The crypto assets underlying Vaneck’s ETNs are in the custody of Bank Frick & Co. AG. The ticker for AVAX ETN will be “VAVA” and the ticker for MATIC ETN will be “VPOL”.