VanEck is introducing the Pyth ETN on Euronext Amsterdam and Paris. Investors can now participate in the performance of PYTH through the issuance of this new Exchange-Traded Note (ETN).
The Pyth Network is a distinctive platform that establishes a connection between the digital realm of blockchain and real-world data. Consider it as a bridge that enables smart contracts, which are automated agreements on blockchains, to access the most recent information from external sources. For instance, it may incorporate stock prices, weather reports, or sports scores to facilitate decision-making.
One of the unique characteristics of Pyth is its emphasis on real-time data. This is extremely beneficial in financial markets, where information is updated on a daily basis. In other words, Pyth acquires “first-party” data directly from sources such as stock exchanges and leading financial institutions. This configuration provides investors with the assurance that they are receiving precise, high-quality information.
The VanEck Pyth ETN is “entirely collateralized,” which means that the assets are acquired and securely stored in “cold storage”—a method that ensures their protection from hackers and inactive access. VanEck has associated with Bank Frick, a financial institution that is subject to regulation in Liechtenstein, in order to safeguard these assets. Due to its listing on regulated stock exchanges, investors can acquire and dispose of this ETN with the same ease as they would any other stock.
VanEck is providing individuals with the opportunity to invest in cryptocurrency in a more conventional, regulated manner by listing this ETN on major exchanges. Additionally, they are “covering their bases” with security by collaborating with a regulated custodian such as Bank Frick, as the saying goes.
The VanEck Pyth ETN is subject to the same hazards as any other investment. Like numerous cryptocurrencies, the price of PYTH is subject to significant fluctuations. Investors should be aware that the market can be “as unpredictable as the weather.” This ETN has a Total Expense Ratio (TER) of 1.5%, which accounts for the expenses associated with the secure storage and management of the assets.
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