FTX Token ETN

ISIN: DE000A3GWNC2

  • FTX Token (FTT) is the backbone of the FTX ecosystem.
  • FTX is one of the leading cryptocurrency derivatives exchange that offers futures and leveraged tokens on both individuals and baskets of crypto assets.
  • FTT has numerous use cases designed to benefit its users and increase network effects around the platform.
  • FTX’s latest valuation was $32 billion as of Jan. 2022.
  • FTX Token ETN is backed by SoftBank’s Vision Fund 2, Tiger Global & VanEck.

Risk of a FTX Token ETN: You may lose money up to the total loss of your investment due to the extreme volatility of this asset class and the Main Risk Factors FTX Token ETN described below and additional risks described in the sales prospectus.

Powering the FTX Exchange with FTX Token

FTX is a cryptocurrency derivatives exchange launched in April, 2019 that offers futures and leveraged tokens on both individual and baskets of digital assets, over-the-counter (OTC) trading, and binary options.

It is backed by Alameda Research, a quantitative cryptocurrency trading firm that provides liquidity in cryptocurrency and digital assets markets for between $600 million and $1 billion of volume a day.

The FTX Token (FTT) is the native token designed for the cryptocurrency derivatives exchange FTX. FTX was designed to prevent clawbacks using a three-tiered liquidation model that closes positions with rate-limited orders and leverages an insurance fund to prevent customer losses.

What makes the FTX Exchange special?

FTX was built with a lot of features to differentiate the firm from its competitors, of which its biggest assets are described below:

Explaining the FTX Token ETN

FTT is the native cryptocurrency of FTX. It was designed to be the backbone for the FTX Exchange and drive it forward.

Clients are typically more institutional than the average exchange, but they cater to all customers.

There’s an even split between customers in East Asia and the West. Separately, FTX launched a decentralized exchange, Serum, which is independent from the FTX ecosystem.

FTX is one of the fastest moving exchanges, quickly creating a name for itself by adding new features at an unprecedented pace.

They have created innovative new products like basket trades, leveraged tokens, prediction markets, and fractionalized stock trading. It has also grown to be a major venue for futures trading

FTX Token Performance

FTX Token ETN by VanEck is based on the performance of the MVIS® CryptoCompare FTX Token VWAP Close Index.

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x
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1 Month 3 Months YTD 1 Year 3 Years
(annualised)
5 Years
(annualised)
MVIS CryptoCompare FTX Token VWAP Close Index -12.29% -5.24% -31.59% -46.79%

Figures in the table as of 31 August 2022. Periods greater than one year are annualised. Source: VanEck, MVIS. The performance quoted represents past performance which is not a reliable indicator of future results. Future performance may be lower or higher than current performance. Investment returns will fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost.

Source: VanEck, MVIS. The performance quoted represents past performance which is not a reliable indicator of future results. Future performance may be lower or higher than current performance. Investment returns will fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost.

VanEck FTX Token ETN

ISIN: DE000A3GWNC2


  • FTX Token is backbone of the FTX Exchange
  • FTX is one of the fastest moving exchanges
  • FTX Token ETN by VanEck provides solutions for crucial market inefficiencies
  • Our FTX Token ETN is tradeable like an ETF on regulated stock exchanges
  • FTX Token ETN is also fully collateralized
  • 1.5% total expense ratio

Risk indication: 7 out of 7

Lower risk: Typically lower reward

Higher risk: Typically higher reward

Main Risk Factors of a FTX Token ETN

Despite all the hype, digital assets are a highly risky investment. Below are key risk factors that need to be considered before making an investment in a FTX Token ETN.

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The trading prices of many digital assets have experienced extreme volatility in recent periods and may well continue to do so. Digital assets were only introduced within the past decade and regulatory clarity remains elusive in many jurisdictions. Digital assets' value depends on such regulation remaining favorable, as well with the technological capabilities, the development of protocol networks, competition from other digital asset networks and from forks. Volatility can be strongly amplified by transactions from speculative investors, hedge funds and other large investors. You may experience losses if you need to sell your Shares at a time when the price of the underlying digital asset is lower than it was when you made your prior investment. Even if you are able to hold Shares for the long-term, your Shares may never generate a profit. That is a risk factor to take into consideration before investing in a FTX Token ETN.

For more information on risks, please see the “Risk Factors” section of the relevant ETN’s prospectus, available on www.vaneck.com.

Why Invest in VanEck ETNs?

  • VanEck is one of the largest providers of crypto exchange-traded notes (ETNs) in Europe; our product offerings are constantly evolving to ensure broad access to innovative opportunities.
  • Our ETNs offer a convenient method to invest in crypto by gaining exposure to the price of coins without the technical difficulties related to coin storage.
  • Our Notes are 100% collateralized; they all are fully invested in the underlying crypto native token.
  • VanEck aims to provide access to the widest possible audience; our ETNs are among the most cost-effective available.
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