FTX Token ETN

ISIN: DE000A3GWNC2

  • FTX Token (FTT) is the backbone of the FTX ecosystem.
  • FTX is one of the leading cryptocurrency derivatives exchange that offers futures and leveraged tokens on both individuals and baskets of crypto assets.
  • FTT has numerous use cases designed to benefit its users and increase network effects around the platform.
  • FTX’s latest valuation was $32 billion as of Jan. 2022.
  • Backed by SoftBank’s Vision Fund 2, Tiger Global & VanEck.

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.

FTT: Powering the FTX Exchange

FTX is a cryptocurrency derivatives exchange launched in April, 2019 that offers futures and leveraged tokens on both individual and baskets of digital assets, over-the-counter (OTC) trading, and binary options.

It is backed by Alameda Research, a quantitative cryptocurrency trading firm that provides liquidity in cryptocurrency and digital assets markets for between $600 million and $1 billion of volume a day.

The FTX Token (FTT) is the native token designed for the cryptocurrency derivatives exchange FTX. FTX was designed to prevent clawbacks using a three-tiered liquidation model that closes positions with rate-limited orders and leverages an insurance fund to prevent customer losses.

What makes the FTX Exchange special?

FTX was built with a lot of features to differentiate the firm from its competitors, of which its biggest assets are described below:

Explaining this ETN

FTT is the native cryptocurrency of FTX. It was designed to be the backbone for the FTX Exchange and drive it forward.

Clients are typically more institutional than the average exchange, but they cater to all customers.

There’s an even split between customers in East Asia and the West. Separately, FTX launched a decentralized exchange, Serum, which is independent from the FTX ecosystem.

FTX is one of the fastest moving exchanges, quickly creating a name for itself by adding new features at an unprecedented pace.

They have created innovative new products like basket trades, leveraged tokens, prediction markets, and fractionalized stock trading. It has also grown to be a major venue for futures trading

FTX Token Performance

The VanEck FTX Token ETN is based on the performance of the MVIS® CryptoCompare FTX Token VWAP Close Index.

x
x
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1 Month 3 Months YTD 1 Year 3 Years
(annualised)
5 Years
(annualised)
MVIS CryptoCompare FTX Token VWAP Close Index -25.77% -32.86% -27.80% -12.42%

Figures in the table as of 31 May 2022. 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.

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.

VanEck FTX Token ETN

ISIN: DE000A3GWNC2


  • Backbone of the FTX Exchange
  • FTX is one of the fastest moving exchanges
  • Providing solutions for crucial market inefficiencies
  • Tradeable like an ETF on regulated stock exchanges
  • Fully collateralized
  • 1.5% total expense ratio
Risk indication: 7 out of 7

Main Risk Factors

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.

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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.

For more information on risks, please see the “Risk Factors” section of the relevant ETN’s prospectus, available on www.vaneck.com.

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