No Jargon Answer to What Is Bitcoin?
Investors may not need to know how bitcoin works technically, but they need to be able to assess the opportunities and risks of investing in bitcoin. Understanding that bitcoin is software is key.
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Participate in the revolution of money.
Since its launch in 2009, Bitcoin’s price has rocketed in value as it has become a type of digital gold, a store of value in an age of uncertainty.
VanEck Vectors Bitcoin ETN (ISIN: DE000A28M8D0) gives investors the following advantages:
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.
Even a small allocation to Bitcoin would have improved a portfolio’s performance over the last few years.
Cumulative Return (%)
| Cumulative Return (%) | Annualised Return (%) | Standard Deviation (%) | |
| Equities* | 162.3 | 11.2 | 13.4 |
| Bonds* | 42.4 | 4.0 | 5.2 |
| 60% Equities 40% Bonds |
108.3 | 8.4 | 9.5 |
Cumulative Return (%)
| Cumulative Return (%) | Annualised Return (%) | Standard Deviation (%) | |
| Equities* | 162.3 | 11.2 | 13.4 |
| Bonds* | 42.4 | 4.0 | 5.2 |
| 59.75% Equities 39.75% Bonds 0.5% Bitcoin |
124.4 | 9.3 | 9.6 |
Cumulative Return (%)
| Cumulative Return (%) | Annualised Return (%) | Standard Deviation (%) | |
| Equities* | 162.3 | 11.2 | 13.4 |
| Bonds* | 42.4 | 4.0 | 5.2 |
| 59.5% Equities 39.5% Bonds 1% Bitcoin |
141.6 | 10.2 | 9.8 |
Cumulative Return (%)
| Cumulative Return (%) | Annualised Return (%) | Standard Deviation (%) | |
| Equities* | 162.3 | 11.2 | 13.4 |
| Bonds* | 42.4 | 4.0 | 5.2 |
| 58.5% Equities 38.5% Bonds 3% Bitcoin |
222.3 | 13.8 | 11.4 |
*Equities are represented by the MSCI World NR USD Index. Bonds are represented by the Bloomberg Barclays Global Aggregate Corporate Index.
Source: Morningstar. Data for the period 1/2/2012 – 28/2/2021. 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 cost.
VanEck gives you exposure to Bitcoin without the hassle and risk of private keys and unverified exchanges. In summary, the VanEck Vectors Bitcoin ETN offers a number of significant advantages:
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 the VanEck Vectors Bitcoin ETN will be used to buy Bitcoin.
The ETN can be bought/sold like a stock, which brings the following advantages:
Only 1% annual all-in fees, making it one of the least expensive products of its kind.
Risk: Investors should consider risks before investing. See Main Risk Factors section on this website.
The VanEck Vectors Bitcoin ETN is based on the MVIS Cryptocompare Bitcoin VWAP Close Index and closely tracks the bitcoin price.
| 1 Month | 3 Months | YTD | 1 Year |
3 Years (annualised) |
5 Years (annualised) |
|
| MVIS Cryptocompare Bitcoin VWAP Close Index | 15.33% | 29.85% | 68.89% | 307.22% | 90.11% | 150.28% |
Figures in the table as of 31 August 2021. 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.
The VanEck Vectors Bitcoin ETN is a fully-collateralized exchange traded note listed on the regulated segment of Euronext, SIX Swiss Exchange and Deutsche Boerse Xetra.
ISIN: DE000A28M8D0
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.
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.
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.
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.
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.
For more information on risks, please see the “Risk Factors” section of the relevant ETN’s prospectus, available on www.vaneck.com.
Investors may not need to know how bitcoin works technically, but they need to be able to assess the opportunities and risks of investing in bitcoin. Understanding that bitcoin is software is key.
Read Blog