TL;DR
- VanEck launches the Pyth ETN on Euronext Amsterdam and Euronext Paris.
- The Pyth Network acts as a decentralized oracle, providing external data to smart contracts.
- The ETN is available in several European countries, including Germany, France and Spain.
On November 5, 2024, VanEck has expanded its offering in the cryptocurrency space with the launch of the VanEck Pyth ETN on the Euronext Amsterdam and Euronext Paris exchanges.
This new financial instrument allows investors to access the profitability of the PYTH cryptocurrency, the token of the Pyth Network, without having to buy or store the asset directly.
The information was published by VanEck in its official press release.
The Pyth Network is a decentralized oracle protocol that allows smart contracts to interact with real-world data, which is essential for the operation of numerous applications in the financial sector.
Without the existence of trusted oracle protocols, blockchain blocks would be isolated and unable to access external information, limiting their applicability in areas such as decentralized finance (DeFi) and insurance.
This network specializes in collecting high-frequency data, making it an ideal solution for financial markets that require real-time information.
Smart contracts, which use blockchain technology, are becoming increasingly important in the financial field due to their multiple applications.
Martijn Rozemuller, CEO of VanEck Europe, has highlighted the importance of oracles in enabling these applications in the real world.
With the Pyth ETN, investors have the opportunity to be part of the development of a network that could become a key piece of the infrastructure for DeFi applications.
Innovation and Security in Investment
The VanEck Pyth ETN reflects the performance of the MarketVector Pyth Network VWAP Close Index, pegged to the price of the PYTH token, which is used to process transactions within the network.
It is important to mention that this ETN is fully collateralized, meaning that the underlying assets are acquired and stored in “cold storage”, a practice that guarantees a high level of security.
VanEck partners with Bank Frick, a regulated custodian in Liechtenstein, to ensure custody of cryptocurrencies in its ETNs.
By listing on regulated exchanges, investors can buy and sell this new product in the same way as other regulated financial assets.
The ETN currently has a total expense ratio (TER) of 1.5%, although it is important to note that there is a risk of extreme volatility associated with cryptocurrency investments.
The launch of the VanEck Pyth ETN marks a significant step towards the integration of cryptocurrencies into traditional markets and reflects the growing acceptance and demand for innovative financial solutions in Europe.
This advancement represents a new era for digital asset investment, allowing investors to access more sophisticated and secure tools.
As interest in cryptocurrencies continues to rise, the role of networks like Pyth Network becomes increasingly critical in the global financial ecosystem.