Famous Company Announced: These 2 Altcoins Entered Investment Offers!

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New York-based renowned investment firm VanEck is expanding its crypto offerings with two new ETNs (exchange-traded notes) on Avalanche (AVAX) and Polygon (MATIC). ETNs will allow customers to invest in altcoin projects without having to buy cryptocurrencies directly. VanEck points out that ETNs can be traded like an ETF on regulated exchanges. In its announcement, the company chose the headline “VanEck expands its crypto investment offering”:

ETNs (exchange-traded notes) represent fully collateralized shares for altcoin projects AVAX and MATIC. ETNs are also fully backed by cryptocurrency exchanges and are held in cold wallets at a crypto custodian. VanEck also points out that ETNs can be traded on regulated exchanges like an ETF. However, Polygon and Avalanche join the likes of Bitcoin, Ethereum, Polkadot, Solana, and Tron in the list of ETNs the firm offers.

What is the difference between ETN and ETF in altcoin projects?

ETNs, or exchange-traded securities, are similar to ETFs in that they are exchange-traded and follow a benchmark index. The main difference between an ENT and an ETF is that an ETN is a senior, unsecured debt instrument issued by a bank, unlike an ETF that holds assets that are the basis of the ETF’s price. As we reported on Somanews, in November the SEC rejected an offer to list a spot Bitcoin ETF from VanEck, but later approved VanEck’s Bitcoin futures-based fund. The famous New York-based investment firm is currently continuing to expand its existing crypto offerings in Europe, which consists of 7 exchange-traded notes.