Van Eck Associates Corp. has introduced a bitcoin exchange-traded note on a German crypto exchange. The trading platform is known as the Deutsche Boerse Xetra Exchange, and the company is trying to take advantage of the crypto wave that has been swelling and getting higher over the past few months.
Van Eck Continues to Move Forward
Van Eck has always been there to push bitcoin when people most need it. Last year, the company was widely considered the frontrunner when it came to getting a bitcoin exchange-traded fund (ETF) approved by the Securities and Exchange Commission (SEC). Sadly, things didn’t quite work out the way the company or crypto traders had planned, but executives have clearly shown that they’re not giving up, and they’ll always be there to ensure crypto gets its moment in the spotlight.
This time is no different. Over the past six or seven months, cryptocurrency has been viewed as a “safe haven” of sorts considering all the economic challenges the globe has been facing. The coronavirus pandemic came knocking on financial institutions’ doors in March, causing stocks, precious metals and of course, bitcoin, to come crashing down within a matter of weeks.
However, with everything else relatively slow to recover, the digital asset was quick to capitalize on the chaos and lack of order that was making its way through modern society, and it wasn’t long (only about two months) before the currency returned to form, jumping from below the $4,000 mark to about $9,000 in early May.
From there, people have viewed cryptocurrency in a new light. They now see it as a hedge tool; something that can potentially diversify their portfolios and keep their wealth steady during times of inflation and economic strife. Fiat currencies continue to suffer while the stock market has been up and down. Bitcoin and crypto, however, have remained relatively stable for some time.
Keeping Things Steady
Van Eck’s new crypto note is fully invested in bitcoin, and presently holds about $2 million in total assets at the time of writing. It is partially insured and held in cold storage to ensure it is safe and protected against hacks and malicious actors. Gabor Gurbacs – director of digital asset strategy at Van Eck – commented in a recent interview:
The next phase of growth in bitcoin and digital assets requires well-regulated access vehicles that fit into the established financial markets.
Crypto has been shooting up especially since October, given that this was the month where bitcoin established a newfound relationship with PayPal. The digital payment platform announced that it would allow users to purchase crypto through its system and potentially purchase items and services with digital assets. At the time, bitcoin was trading for just over $10K following a particularly bearish September, though it wasn’t long before the asset rose to $13,000.
Source: Live Bitcoin News