TRON is a next-generation smart blockchain platform that aims to "decentralize the web." It offers fast transaction speeds and low costs, making it attractive for developers and businesses.

VanEck TRON ETN provides exposure to TRON without the hassle and risk of private keys and unverified exchanges. It is collateralized with TRON stored in cold storage at a regulated custodian and can be traded on regulated stock exchanges and traditional brokers.

What are the main risk factors associated with investing in VanEck TRON ETN?

Investing in VanEck TRON ETN carries certain risk factors that investors should consider. These include the potential for losses and volatility in the digital asset market, currency risk, technology risk, regulatory risk, and adoption risk.

TRON ETN

Asia's Blockchain Innovator

Marketing Communication

VanEck TRON ETN

Exposure to the one of the next generation smart-contract platforms
100% collateralized with TRON in cold storage at a regulated custodian
Tradeable on regulated stock exchanges and traditional brokers

ETN-Details

Basis-Ticker: VTRX
ISIN: DE000A3GSUE1

TER: 1.50%
AUM: $47.5 M (as of 08-11-2024)

Lower risk

Typically lower reward

Higher risk

Typically higher reward

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.

What is special about TRON?

TRON’s combination of relatively fast speeds and lower transaction costs make it one of the new generation of blockchain platforms on top of which developers are building a wide variety of decentralized apps. TRON is helping to make the blockchain a practical option for businesses.

The protocol is based on ‘delegated proof-of-stake’ crypto technology that is the key to its greater transaction capacity, speed and security.

The TRON Foundation was founded in 2017 in Singapore by a serial Chinese tech entrepreneur. Today, TRON is one of the fastest-growing crypto platforms, and hosts the world’s largest stablecoin. TRON has joint headquarters, in the Americas and Asia Pacific.

Scalable
TRON’s scalability and highly effective smart contract can support an enormous...

Scalable

TRON’s scalability and highly effective smart contract can support an enormous number of users.

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Sources: TRON, TRON Ecosystem Introduction, Kraken, Coinmarketcap, Coindesk.
DPOS: Nodes are selected to act as validator nodes for a set time period based off of the number of votes they receive from other nodes.
	Bitcoin	Ethereum	TRON
# of active nodes	46,818	5,225	6,071
Block time	10 minutes	14 seconds	3 seconds

Low Cost
TRON's average transaction fee is 46 times cheaper than Bitcoin and 220...

Why Invest in TRON ETN?

The TRON platform was founded as a next-generation smart blockchain platform that would “decentralize the web”, to quote its slogan.

It’s quickly gaining ground – the TRON website reports it has almost 54 million accounts and has processed 2.4 billion transactions. The TRON ecosystem ranks among the top five active dApp platforms by users, transactions and developer activity.

TRON ETN tracks the value of TRX and uses the MVIS CryptoCompare TRON VWAP Close Index for the calculation of its NAV.

Who is the founder of TRON?
Justin Sun is a serial entrepreneur and very well-known in the blockchain industry...

What is a Delegated Proof of Stake (DPoS)?
The TRON consensus mechanism uses a Delegated Proof of Stake syste...

Transaction frequency
The TRON network is now processing far more daily transactions than Bitcoin or Ethereum....

TRON Performance

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

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.

Crypto ETN Benefits

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

Safety
100% collateralized
Trades like a stock on Xetra, SIX and Euronext
Can be purchased through a regular bank or broker
Cost efficient

TRON 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.

Every Euro invested into a TRON ETN by VanEck will be used to buy TRON.

Fully collateralized by physically buying TRON
No lending of TRON
No use of derivatives

TRON ETN can be bought/sold like a stock, which brings the following advantages:

Central clearing reduces counterparty risk in settlement of transactions
Transparency of issuer and investor documents
Indicative net asset values (without excessive premiums or discounts)
Sponsors/market makers enhance trading liquidity

No need for private keys or to store digital assets on a wallet
Can be integrated into your investment portfolio

Only 1.5% annual all-in fees, making it one of the least expensive products of its kind.

Key Documents and Links

Fact sheet

KIID

Prospectus

Fund page

Main Risk Factors of the TRON 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.

Risk of Losses and Volatility
Currency Risk
Technology Risk
Regulatory Risk
Adoption Risk

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. Thus, it is worth considering this risk factor before investing in a TRON ETN.

If the currency of the Product differs from the currency you invest in, your final return depends on the exchange rate between your investment currency and the currency of the Product. That is one of the factors to consider before making an investment in a TRON ETN.

Trading venues and systems used by market participants to trade the Digital Asset may be subject to hacking and could result in loss of the Product. This is one of the risk factors to take into account when making an investment in a TRON ETN.

With a significant proportion of transactions based on the Tether stablecoin, Tron may face headwinds in certain jurisdictions eg. New York. This is a risk factor to take into consideration when planning an investment in a TRON ETN.

If the network model doesn’t attract developers to build dApps and other blockchain projects, then TRON token price will likely struggle. This is another factor to take into account when considering an investment in a TRON ETN.

Please contact us for more information:

Phone: +31 (0)20 719 51 00
Email: EMEAinfo@vaneck.com