Asset manager VanEck has introduced the VanEck Pyth ETN in Europe, a financial product based on the PYTH token from Pyth Network, available on Euronext Amsterdam and Paris for investors in 15 European countries.
Introducing a New Crypto ETN Listed on Major European Exchanges
On November 5th, asset manager VanEck announced the launch of a new Exchange Traded Note (ETN) in Europe, based on the performance of the native token of Pyth Network, PYTH. This ETN, named VanEck Pyth ETN, will be available on the Euronext Amsterdam and Euronext Paris platforms. Investors from 15 European countries, including France, Switzerland, Germany, Norway, and Luxembourg, will have access to it, expanding the investment options in digital assets on the continent.
Pyth Network: An Essential Infrastructure for DeFi
Pyth Network is a decentralized oracle protocol designed to enable smart contracts to interact with external data and establish connections with other blockchain networks. Unlike traditional oracles, Pyth Network specializes in integrating reliable real-time data, crucial for the proper functioning of decentralized finance applications. Its governance token, PYTH, has a diluted market capitalization of approximately $3.4 billion, reflecting its rising position in the sector.
Smart contracts based on blockchain are gaining importance in the financial world due to their multiple applications. Oracle networks, such as Pyth, play a fundamental role in realizing these applications in real-world contexts.
Martijn Rozemuller, CEO of VanEck Europe
Rozemuller emphasizes the importance of Pyth Network in decentralized finance applications, paving the way for broader adoption and even more innovative use cases.
Physical Coverage for Enhanced Security
The VanEck Pyth ETN has been designed to closely track the MarketVector Pyth Network VWAP Close Index, ensuring a direct correlation with the PYTH’s market performance. Unlike traditional ETNs, which can be based on synthetic assets, this instrument is fully collateralized with ‘physical’ PYTH tokens held by Bank Frick, a renowned digital asset custodian bank based in Liechtenstein. This physical guarantee aims to enhance the security of the ETN and provide investors with a transparent and reliable exposure to the underlying asset, closely resembling the functioning of Bitcoin and Ethereum Spot ETFs in the United States.
VanEck: A Pioneer of Crypto Products in Europe
VanEck is no stranger to financial products dedicated to digital assets. The company has already launched over a dozen Exchange Traded Products (ETPs) in Europe, covering cryptocurrencies such as Solana (SOL) and Chainlink (LINK). In parallel, it has introduced two Spot Crypto ETFs in the United States: VanEck Bitcoin ETF (HODL) and VanEck Ethereum ETF (ETHV), signaling its commitment to the US market.
In 2024, as asset managers continue to request regulators to launch ETFs based on altcoins like SOL, XRP, and Litecoin, US regulation remains cautious. On the day of the presidential elections, the outcome of the vote could influence the regulator’s policy and potentially unlock the approval of new crypto ETFs.
