Ethereum ETN

ISIN: DE000A3GPSP7

  • Exposure to the second largest cryptocurrency and the largest digital platform
  • Can be bought through a bank or broker
  • Stored at regulated custodian, 100% collateralized by Ethereum
  • Tradeable like an ETF on regulated stock exchanges
  • 1% annual total expense ratio

Risk: You may lose money up to the total loss of your investment due to the Main Risk Factors described below and additional risks described in the sales prospectus.

Why Invest in the Ethereum ETN?

Ethereum is the fast-growing platform for digitizing physical assets – arguably a new frontier for finance and many other sectors. As the platform gains ground, its Ether currency is gaining value.

Adding Ethereum to a Portfolio

Even a small allocation to Ethereum would have improved a portfolio’s performance over the last few years.

60% Equities / 40% Bonds Portfolio

x
x

*Equities are represented by the MSCI World NR USD Index. Bonds are represented by the Bloomberg Barclays Global Aggregate Corporate Index.

Source: Morningstar. The performance quoted represents past performance which is no guarantee 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 costs.

Diversifying Cryptocurrencies

Don’t put all your eggs in one basket, as the saying goes. This also holds for cryptocurrencies. If one currency goes up, the other may go down, and vice versa. Hence, a basket of cryptocurrencies is expected to have a lower volatility than a single cryptocurrency: diversification reduces risk.

As the graph shows, this has been true for Bitcoin and Ethereum. Technically speaking, the correlation for the period was 0.61. This means that owning Bitcoin and Ethereum would have reduced risk compared to only investing in one or another.

Daily Returns of Ethereum and Bitcoin

Source: VanEck Analysis, based on daily return data. Data for the period 1/1/2021 – 21/3/2021. Past performance is not a reliable indicator for future performance. This also holds for historical market data. Correlation levels may change over time.

Simple and Reliable Ethereum ETN

VanEck gives you exposure to Ethereum without the hassle and operational risk of private keys and unverified exchanges. In summary, the VanEck Ethereum ETN offers a number of significant advantages:

  • Ethereum deposited in state-of-the-art cold storage1
  • At Bank Frick & Co. AG, a custodian regulated under the “Law on Tokens and Trusted Technology Service Providers” ( “Blockchain Act”) and a holder of a “TT Token Depositary” license
  • Insurance (up to certain level)

1Setup in which private keys are stored in an environment not connected to the internet, in order to reduce risk of hacking.

Risk: Investors should consider risks before investing. See Main Risk Factors section on this website.

Ethereum Performance

The VanEck Ethereum ETN is based on the MVIS CryptoCompare Ethereum VWAP Close Index and closely tracks the ethereum price.

x
x

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.