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. *Staking rewards are not guaranteed.
Ethereum, and its native currency ETH, have the strongest network effect compared to all other smart contract platforms in the market. It’s technology is battletested while at the same time continuously improving due to the massive ecosystem of developers building on its network.
Ethereum is the fast-growing platform for digitizing physical assets – arguably a new frontier for finance and many other sectors. As the platform gains ground, its Ether (ETH) currency is gaining value. VanEck's Ethereum ETN allows to invest in this growing ecosystem, in a comparable manner to a traditional ETF.
Ethereum is a decentralized, open-source blockchain platform that enables smart contract functionality. It allows developers to build and deploy decentralized applications (DApps) on its network. Ether (ETH) is the native cryptocurrency of Ethereum, used to compensate participants who perform computations and validate transactions.
Proof-of-Stake (PoS) is a consensus mechanism used by some blockchain networks, including Ethereum, to achieve agreement on the state of the network. In a PoS system, validators (participants who hold a stake in the network) are chosen to create new blocks and validate transactions based on the amount of cryptocurrency they hold and are willing to "stake" as collateral. The more cryptocurrency a validator stakes, the more likely they are to be chosen to validate transactions and create new blocks.
Here's how it works:
In summary, Ethereum is a blockchain platform that supports smart contracts, and it transitioned from a Proof-of-Work to a Proof-of-Stake consensus mechanism in 2022, where validators are chosen based on the amount of cryptocurrency they hold and are willing to stake, rather than the computational power they provide.
Earn up to 5% Additional Yield* with the VanEck Ethereum ETN
The Ethereum Staking Yield is by many considered to be like the “risk-free” rate of Crypto. Staking is the use of capital at risk in the form of locked tokens to secure the network, earn yield for providing your resource. The locked tokens represent a vote that contributes in distributed consensus and execution of transactions.
Staking is now enabled for the VanEck Ethereum ETN. What does this mean for you as investor and what do you need to do to earn additional rewards? Here are the key features of how staking is done through the VanEck Ethereum ETN.
Even a small investment in an Ethereum ETN would have improved a portfolio’s performance over the last few years. This exposure can be gained through VanEck's Ethereum ETN, in a similar way to an ETF.
*Equities are represented by the MSCI World NR USD Index. Bonds are represented by the Bloomberg Barclays Global Aggregate Corporate Index.
Source: Morningstar. 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 costs.
*Equities are represented by the MSCI World NR USD Index. Bonds are represented by the Bloomberg Barclays Global Aggregate Corporate Index.
Source: Morningstar. 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 costs.
*Equities are represented by the MSCI World NR USD Index. Bonds are represented by the Bloomberg Barclays Global Aggregate Corporate Index.
Source: Morningstar. 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 costs.
*Equities are represented by the MSCI World NR USD Index. Bonds are represented by the Bloomberg Barclays Global Aggregate Corporate Index.
Source: Morningstar. 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 costs.
Ethereum ETN by VanEck is based on the MVIS CryptoCompare Ethereum VWAP Close Index and closely tracks the ethereum 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.
VanEck gives you exposure to Ethereum without the hassle and operational risk of private keys and unverified exchanges. In summary, Ethereum ETN by VanEck offers a number of significant advantages:
Every Euro invested into an Ethereum ETN by VanEck will be used to buy Ethereum
Ethereum ETN can be bought/sold like a stock, which brings the following advantages:
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.
The note provides exposure to the leading digital asset, Ethereum. Due to this concentrated exposure to a limited number of digital assets, prospective investors should be aware that there are risks deriving from such concentration, the most significant of which is the impact on the liquidity and the volatility of the notes. This is one of the factors to take into account when considering an investment in an Ethereum ETN.
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. That is another factor to consider before investing in an Ethereum ETN.
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. That is one of the risk factors to take into account before making an investment in an Ethereum ETN.
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. That is another factor to take into consideration when making an investment in an Ethereum ETN.
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. This is a further risk factor to take into account before investing in an Ethereum ETN.
