Advertisement
VanEck Introduces Solana Oracle Pyth ETN: Will Prices Keep Up?
- VanEck has launched a Pyth Exchange Traded Note (ETN) on Euronext Amsterdam and Paris.
- The ETN allows investors to gain crypto exposure by tracking the PYTH token without holding it.
- Pyth Network is a decentralised oracle ensuring data accuracy for smart contracts.
- The ETN is fully collateralised with secure storage, trades on regulated exchanges, and has a 1.5% expense ratio.
VanEck has released or applied for a number of crypto-related products recently, for example letting people earn staking incomes in Solana. Now they’re launching a Pyth Exchange Traded Note (ETN) in Europe.
Related: UK Pension Fund Cartwright Makes 3% Bitcoin Allocation
The asset manager announced yesterday that they’re listing the ETN on Euronext Amsterdam and Euronext Paris on Tuesday. The ETN allows investors to increase their crypto exposure without directly holding the underlying asset.
With this Exchange Traded Note (ETN), investors can participate in the performance of the PYTH cryptocurrency, the token of the Pyth Network, without having to directly buy or store it.
VanEck Europe The Pyth Network is a decentralised oracle protocol that allows smart contracts to access real-world data and communicate across blockchain networks, enhancing their functionality beyond isolated systems.
Specialising in high-frequency, real-time data for financial markets, Pyth secures data directly from primary sources like exchanges and trading firms, ensuring transparency and reliability by rewarding data providers for accuracy over volume.
Pyth Emerging as a Central DeFi Player, Says VanEck
Martijn Rozemuller, CEO of VanEck Europe, stated that the new Pyth ETN will give investors the opportunity to “participate in the development of a network such as Pyth Network”, which they see emerging as a key decentralised finance (DeFi) player.
Smart contracts based on blockchain technology are gaining increasing significance in the financial world due to their numerous applications, and oracle networks play a crucial role in enabling real-world use for smart contracts.
Martijn Rozemuller, CEO VanEck Europe The VanEck Pyth ETN tracks the MarketVector Pyth Network VWAP Close Index, which mirrors the price of the PYTH token.
Related: Glassnode Exposes $224 Billion Solana Surge; VanEck Cites 14% Revenue from Wash Trading
This ETN is fully collateralised, with its assets securely stored in cold storage by Bank Frick, a custodian regulated in Liechtenstein, ensuring a high security standard. Listed on regulated stock exchanges, it allows trading similar to other exchange products but comes with a total expense ratio of 1.5% and carries a risk of extreme volatility, a VanEck press release said.
Meanwhile, the price of Pyth, the token of the Pyth Network, is down 11% week-on-week but has gained 3.85% in the past 24 hours. Currently Pyth trades for US$0.3372 (AU$0.5131) as per data from CoinMarketCap.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
