First centrally cleared exchange-traded notes (ETNs) on TRON.
Exchange-traded products (ETP) provider VanEck Europe listed yesterday (22 September) three new exchange-traded notes (ETNs) tracking Polkadot, Solana and TRON which will be tradable for the first time via Xetra and Boerse Frankfurt.
The new three crypto ETNs add to the range of crypto ETNs on Bitcoin, Bitcoin Cash, Ethereum and Litecoin, already available on Deutsche Börse. It also marks the first time TRON, the controversial cryptocurrency developed by Chinese entrepreneur Justin Sun, is made available in the structured products market.
Despite being one of the fastest-growing digital currencies – its total market cap has increased from US$1.4 billion in January 2019 to US$6.5 billion as of today - some researchers defined TRON as an Ethereum clone, with no fundamental differences, and a typical case of the complex nature of cryptocurrencies.
With an average monthly order book turnover of €900m, Deutsche Boerse’s Xetra is also the leading trading venue for crypto ETNs in Europe.
In June last year, Deutsche Börse was the first exchange worldwide to launch trading in centrally cleared crypto products. Investors now have access to 18 crypto ETNs from six issuers including 21Shares, Coinshares, ETC Group, Iconic, VanEck ETP and WisdomTree on seven cryptocurrencies.
The new three ETNs by VanEck Europe will offer exposure to the cryptocurrencies via the MVIS CryptoCompare Solana VWAP Close Index, MVIS CryptoCompare Polkadot VWAP Close Index and MVIS CryptoCompare TRON VWAP Close Index developed by MVIS and CryptoCompare.
The three indices are designed to measure the performance of the respective digital assets - Solana, Polkadot and TRON, with a closing value based on an hourly volume weighted average price (VWAP). They are rules-based indices which cover the broadest CryptoCompare's Aggregate Pricing Index (CCCAGG) pricing provided by CryptoCompare, calculated in USD as price return indices.
VanEck is focusing its digital assets offering on smart contract platforms - programmes that are stored on a blockchain that are executed automatically when predefined conditions are met. The best-known example of such a platform is Ethereum with its integrated cryptocurrency Ether.
‘Ethereum continues to grow in popularity, but younger platforms also offer many advantages, such as lower transaction costs or faster processes,’ said Martijn Rozemuller, CEO at VanEck Europe.
21Shares switches to Vinter
21Shares has reached an agreement with the specialised crypto asset index provider to supply the underlyings for its existing and new range of crypto ETPs.
The agreement with Vinter is aimed at offering ‘innovative strategies genuinely tailor made for this industry’ and capture ‘more closely and accurately the asset growth, universe and selection process’.
For one of its 21Shares existing ETP crypto basket, the Sygnum Moon Winner, Vinter will take responsibility for the administration and calculation of the indices, a role previously undertaken by MVIS Indices.
‘With Vinter, we are able to deploy a set of indices precisely crafted to our clients’ requests,’ said Hany Rashwan, CEO of 21Shares.
Six rolls out new crypto index
Six exchange has expanded its cryptocurrency index offering with the SDX Bi-Cap Index family, which comprises the SDX BTC (Bitcoin) and SDX ETH (Ether) indices.
The Swiss exchange has also completed the conversion of its Crypto Market Index 10 into the new Six Crypto Market Index 10, which includes SIX Average Rates for the major cryptocurrencies including Bitcoin, Ether, Litecoin, Ripple, Bitcoin Cash ABC, Chainlink, Polkadot, Cardano, Uniswap and Dogecoin.
The Six Crypto Market Index 10 was standardised at 1,000 points on 30 December 2016. The SDX Bi-Cap index started at 1,000 points on 2 August 2019.
Trading turnover in crypto products at the Swiss exchange continues to grow. More than CHF5 billion have been traded in 2021 – more than during any whole year since crypto products were first admitted for trading at Six in 2016. The Six exchange offers 10 different single crypto currencies via ETPs and structured products.
ETC Group Launches Bitcoin Cash ETP, debuts Europe’s first Bitcoin Futures
ETC Group has launched a Bitcoin Cash ETP on Deutsche Boerse XETRA, available for trading from yesterday (21 September).
With a total expense ratio (TER) of 1.95%, the new crypto product, called BCHetc - ETC Group Physical Bitcoin Cash (ticker: BTCH) aims to be the lowest cost Bitcoin Cash product available.
Bitcoin Cash (BTCH) began as a fork of the original cryptocurrency, Bitcoin, and in the intervening years has seen global merchant adoption as a cross-border payments protocol promising cheap, fast transactions, with all the security, transparency, and tamper-resistant benefits of a leading blockchain.
The ETP provider is also the first to debut and go live with the listing of Europe’s first Bitcoin Futures contract on Eurex.
The Bitcoin ETN Futures created and launched by Eurex is based on ETC Group’s BTCetc - ETC Group Physical Bitcoin (ticker: BTCE). The new futures contract will trade in Euros and be physically delivered in BTCE. BTCE launched on Deutsche Börse XETRA in June 2020, and is now listed on multiple European exchanges.
The new ETP and the BTCetc - ETC Group Physical Bitcoin futures contract are marketed and distributed across Europe by HANetf, alongside ETC Group’s existing physical ETPs based on Bitcoin, Ethereum and Litecoin.