The wealth manager Vaneck has announced it has expanded its exchange-traded note (ETN) offerings to support the tokens polygon and avalanche. The two ETNs follow five previously launched funds in Europe that allow investors to gain exposure to leading digital assets.
Vaneck Adds Polygon and Avalanche to Its List of Cryptocurrency ETNs
Vaneck has announced the launch of two ETNs that leverage the crypto assets polygon (MATIC) and avalanche (AVAX). The ETNs represent shares of either AVAX or MATIC and the funds are fully collateralized. “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 have seen significant demand this year and have gathered massive gains year-to-date. The token avalanche (AVAX) has seen its market capitalization join the top ten digital assets in the world, in terms of overall valuation. Today, AVAX holds the 9th position after climbing 3,509% since this time last year.
Polygon (MATIC) has also risen in value a great deal in 2021 with year-to-date gains of around 11,393%. MATIC is the 14th largest crypto asset in terms of market capitalization today which is around $15 billion. Both MATIC and AVAX are compatible with Ethereum but are also considered Ethereum competitors.
Vaneck to Leverage Crypto Compare’s MVIS Data, Bank Frick to Custody Crypto Assets
The ETNs offered by Vaneck are like exchange-traded funds (ETFs) but ETNs are considered unsecured debt securities. Vaneck had tried to get its spot market bitcoin (BTC) ETF approved by the U.S. Securities and Exchange Commission this year but the ETF was denied in mid-November.
The Polygon and Avalanche ETNs use Crypto Compare’s MVIS data to replicate the value and yield performance of each asset. The underlying crypto assets in Vaneck’s ETNs are held in custody by Bank Frick & Co. AG. The AVAX ETN ticker will be “VAVA,” and the MATIC ETN ticker will be “VPOL.”
Tags in this story
What do you think about Vaneck introducing Polygon and Avalanche ETNs? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 4,900 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.