UST Aftershocks Weigh on Crypto
Digital assets contended with the fallout from the Terra ecosystem’s collapse in May. We take a closer look at the impact on different digital assets sectors.
Read Blog
ISIN: DE000A3GWEU3
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.
VanEck Crypto Leaders ETN strategy is a diversified basket of crypto assets providing exposure to some of the most liquid digital assets amongst the top 10 cryptocurrencies weighted by market capitalization in accordance with the custodian specifications applicable and the approvals by the relevant stock exchanges.
The strategy allows investors easy and diversified access to the growth potential of the world’s transition to Web 3.0 and Modern Finance.
Risk of extreme volatility
Risk of extreme volatility
Bitcoin long held a majority share of the entire crypto market capitalization. Despite the rise of Ethereum and other smart contract platforms, bitcoin remains the largest digital asset by far. The network processed 90m terahashes per second as of June 2021. However, over time there‘s a clear trend of altcoins gaining market share.
Bitcoin's market cap has fallen over time as new coins have gained market share
Source: MVIS, CoinMarketCap, Blockchain.com. Data as of 30 September 2021.
As the digital asset industry matured, altcoins decoupled from bitcoin and drove significant small-cap out-performance. Bitcoin has underperformed the Crypto Leaders Index by 244 percentage points and over performed the small-cap index by 572 percentage points since the start of 2021 as illustrated by the below.
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.
ISIN: DE000A3GWEU3
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 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.
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.
Trading venues and systems used by market participants to trade crypto assets may be subject to hacking and could result in loss of crypto assets.
For more information on risks, please see the “Risk Factors” section of the relevant ETN’s prospectus, available on www.vaneck.com.
Digital assets contended with the fallout from the Terra ecosystem’s collapse in May. We take a closer look at the impact on different digital assets sectors.
Read Blog