After spending a lot of 2019 unsuccessfully lobbying to get its exchange-traded fund, or ETF, permitted by the US Securities and Change Fee, funding administration fund VanEck has lastly launched a Bitcoin-backed exchange-traded product.

Nevertheless, in keeping with a Nov. 25 tweet from the corporate’s digital asset strategist Gabor Gurbacs, the product is an exchange-traded word reasonably than an ETF, and is listed not on a U.S. alternate, however Germany’s Deutsche Börse Xetra.

Somewhat than being a mutual fund, an ETN is actually a debt instrument monitoring a generally hard-to-access market, on this occasion, Bitcoin.

The VanEck Vectors Bitcoin ETN is 100% backed by bodily Bitcoin (BTC) and affords buyers direct publicity to the Bitcoin market within the trusted format of different regulated exchange-listed merchandise. Product supervisor Dominik Poiger defined:

“Our Bitcoin ETN is absolutely collateralized. Which means that the cash invested within the ETN is definitely used to purchase Bitcoin. On this approach, every ETN represents a specific amount of Bitcoin.”

The Bitcoin shall be deposited and held in chilly storage by Liechtenstein-based crypto custodian Financial institution Frick.

VanEck put numerous effort into making an attempt to steer the SEC to approve its Bitcoin ETF all through the primary a part of 2019, however to no avail, and the Chicago Board Choices Change withdrew the proposal in September, a month earlier than the ultimate choice was due.

As Cointelegraph reported, the corporate not too long ago revealed analysis displaying that Bitcoin is much less risky than many shares listed on the S&P 500.