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VanEck Ethereum ETN
- Exposure to the first and largest smart-contract platform
- 100% collateralized with ETH in cold storage at a regulated custodian
- Tradeable on regulated stock exchanges
- Earn up to 5% additional yield through staking rewards* with the VanEck Ethereum ETN
VETH
ETN-Details
ETN-Details
Basis-Ticker:VETHISIN:DE000A3GPSP7
TER:1.00%
AUM:$161.0 M (as of 20-06-2025)
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Risk: 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 described below and additional risks described in the sales prospectus. *Staking rewards are not guaranteed.
What is Staking
Ethereum is a decentralized, open-source blockchain platform that enables smart contract functionality. It allows developers to build and deploy decentralized applications (DApps) on its network. Ether (ETH) is the native cryptocurrency of Ethereum, used to compensate participants who perform computations and validate transactions.
Proof-of-Stake (PoS) is a consensus mechanism used by some blockchain networks, including Ethereum, to achieve agreement on the state of the network.
Here's how it works:
- Validators lock up a certain amount of cryptocurrency as stake.
- Validators are chosen to create new blocks and validate transactions.
- Validators who successfully validate transactions and create new blocks are rewarded.
- Validators who behave maliciously or try to attack the network risk losing their stake.
- Resource Requirement: Proof-of-Work requires validators (miners) to expend computational resources (electricity and hardware) to solve complex mathematical puzzles, whereas Proof-of-Stake requires validators to stake cryptocurrency.
- Security: Both mechanisms aim to secure the network, but they do so in different ways. Proof-of-Work relies on the computational power of miners to secure the network, while Proof-of-Stake relies on the economic incentives of validators to maintain the network's integrity.
- Environmental Impact: Proof-of-Work is criticized for its high energy consumption, as mining requires significant computational power. Proof-of-Stake is considered to be more energy-efficient because it doesn't require intense computational calculations.
- Decentralization: Both mechanisms have implications for decentralization. Some argue that Proof-of-Work tends to centralize around miners with significant resources, while Proof-of-Stake may lead to centralization among validators with large stakes. However, PoS protocols often implement mechanisms to mitigate centralization risks, such as delegation or slashing.
In summary, Ethereum is a blockchain platform that supports smart contracts, and it transitioned from a Proof-of-Work to a Proof-of-Stake consensus mechanism in 2022, where validators are chosen based on the amount of cryptocurrency they hold and are willing to stake, rather than the computational power they provide.
Earn up to 5% Additional Yield* with the VanEck Ethereum ETN
The Ethereum Staking Yield is by many considered to be like the “risk-free” rate of Crypto. Staking is the use of capital at risk in the form of locked tokens to secure the network, earn yield for providing your resource. The locked tokens represent a vote that contributes in distributed consensus and execution of transactions.
- Earn passive income through the VanEck Ethereum ETN
- Access to staking yield with a product that trades like an ETF
- Contribute to the network’s security, a win-win for the investor and the decentralized community
*Staking rewards are not guaranteed.
How does Staking work in Practice for the VanEck Ethereum ETN?
Staking is now enabled for the VanEck Ethereum ETN. What does this mean for you as investor and what do you need to do to earn additional rewards? Here are the key features of how staking is done through the VanEck Ethereum ETN.
- The staking methods we employ are fully non-custodial, there is no lending risk involved.
- Investors of the Ethereum ETN do not need to take any action, if rewards are paid out, they will be accounted for in the coin entitlement of the ETN.
- Any staking rewards will be included in the end of day NAV on a daily basis with a cut-off point at 4pm CET.
Frequently Asked Questions:
Staking an ETN in Practice
Adding an Ethereum ETN to a Portfolio
Even a small investment in an Ethereum ETN would have improved a portfolio’s performance over the last few years. This exposure can be gained through VanEck's Ethereum ETN, in a similar way to an ETF.
60% Equities / 40% Bonds Portfolio
Add 1% Ethereum
Add 3% Ethereum
Why Invest?
Cryptocurrency’s use has been growing and is at the edge of potential mass scale adoption. Our ETN offers a way to invest across the breadth of the market, as newer currencies gain ground against Bitcoin, the original currency.
Ethereum Continues to Take Market Share from Bitcoin
Source: Coinmarketcap. Data as of 25 August 2024.
Key Documents and Links
Main Risk Factors of an Ethereum 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 an Ethereum ETN.
The note provides exposure to the leading digital asset, Ethereum. Due to this concentrated exposure to a limited number of digital assets, prospective investors should be aware that there are risks deriving from such concentration, the most significant of which is the impact on the liquidity and the volatility of the notes. This is one of the factors to take into account when considering an investment in an Ethereum ETN.
The issuer intends to invest in a single digital asset. Because the class of digital asset investments is growing at a rapid pace, all risks relating to the underlying technology may not be known. As new digital assets develop and attract interest from the development community and investors, they may also become greater targets for exploitation. That is another factor to consider before investing in an Ethereum ETN.
Digital assets are a new technological innovation with a limited history. There is no assurance that usage of digital assets will continue to grow. A contraction in use of digital assets may result in increased volatility or a reduction in the price of such digital assets, which could adversely impact the value of the notes. For example, Bitcoin, one of the earliest digital assets, was invented in 2009. Digital assets and their respective trading histories have therefore existed for a relatively short time, which limits a potential investor’s ability to evaluate an investment in the notes. That is one of the risk factors to take into account before making an investment in an Ethereum ETN.
Speculators and investors who seek to profit from trading and holding digital assets generate a significant portion of the demand for such digital assets. Speculation regarding future appreciation in the value of digital assets may inflate and make more volatile the price of such digital assets. As a result, digital assets may be more likely to fluctuate in value due to changing investor confidence in future appreciation in the price of digital assets. That is another factor to take into consideration when making an investment in an Ethereum ETN.
Regulators and governments in various jurisdictions have focused on regulation of digital assets. Digital asset market disruptions and resulting governmental interventions are unpredictable, and may make digital assets or certain digital assets illegal altogether. Future regulations and directives in some jurisdictions may conflict with those others, and such regulatory actions may restrict or make some or all digital assets illegal in some jurisdictions. Future regulations and directives may impact the demand for digital assets, and may also affect the ability of digital assets exchanges to operate and for other market participants to enter into digital assets transactions. This is a further risk factor to take into account before investing in an Ethereum ETN.