Invest in the Polkadot ETN

Enabling an ecosystem of blockchains

Why Invest in the Polkadot ETN?

Polkadot is a next-generation, highly-customizable smart contract platform that provides low cost and interoperability for entrepreneurs looking to build their own blockchains.

VanEck Vectors Polkadot ETN (ISIN: DE000A3GSUC5) gives investors the following advantages:

  • Exposure to a technologically advanced smart contract platform
  • Early investment in a “picks and shovels” blockchain technology that provides better speed, lower transaction costs and easy interoperability vs competitors
  • Rapid growth momentum1
  • Access through easily-traded ETN
  • Tradeable like an ETF on regulated stock exchanges
  • Fully collateralized

1Source: VanEck: Polkadot’s market capitalisation has been growing fast.

Note that the blockchain ecosystem is still developing. The winners and losers in its ecosystem are not certain. There are no guarantees. You may lose money up to the total loss of your investment due to the Main Risk Factors such as very high volatility, currency risk, execution risk, adoption risk, governance risk and technology risk which are described below and in the sales prospectus.

What is special about Polkadot?

Polkadot is a next-generation smart contract platform with technological efficiencies that make the establishment and operation of blockchains more practical in the commercial world. Put simply, it offers a compelling combination of interoperability, security, speed and low transaction costs. The result? An 85-90% decline in the cost and effort required to build a new blockchain.

Since launch in May 2020, Polkadot’s market capitalisation has soared, with daily transactions approaching the level of Bitcoin’s. The number of parachains (independent blockchains) linked to Polkadot is also growing quickly, with hundreds of independent projects across decentralized finance, gaming & NFTs.

Explaining this ETN

As the Ethereum blockchain ecosystem becomes increasingly congested due to the volume of traffic, a new generation of smart contract platforms has arrived, with the potential to take blockchain’s potential to the next level.

Polkadot’s "proof-of-stake", community-governed blockchain protocol has the key advantage of interoperability. This allows developers to build blockchains quickly and cheaply.

As Polkadot has quickly become a thriving ecosystem of parachains (blockchains), the demand for DOT has increased.

This ETN tracks the value of DOT and uses the MVIS CryptoCompare Polkadot VWAP Close Index for the calculation of its NAV​.

VanEck Vectors Polkadot ETN

ISIN: DE000A3GSUC5


  • Next-generation blockchain platform
  • Growing rapidly in usage and market capitalisation
  • Easily traded on Deutsche Börse
  • Fully collateralised
  • 1.5% total expense ratio
  • Regulated custodian

Risk indication: 7 out of 7

Lower risk: Typically lower reward

Higher risk: Typically higher reward

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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