VanEck Launches Chainlink, Smart Contract Crypto ETNs

The products offer diversified access to the smart contract ecosystem.

Reviewed by: Theo Andrew
Edited by: Theo Andrew

[Editor’s note: This article originally appeared on ETF Stream]


LondonVanEck has launched two crypto exchange-traded notes (ETNs) offering exposure to chainlink and a basket of five cryptocurrencies in the smart contract space.

The VanEck Chainlink ETN (VLNK) and the VanEck Smart Contracts Leaders ETN (VSMA) are listed on the Deutsche Boerse with total expense ratios (TERs) of 1.50%.

VLNK tracks the performance of the MVIS CryptoCompare Chainlink VWAP Close index while VSMA tracks the CryptoCompare Smart Contract Leaders VWAP Close index.

Chainlink, first launched in 2017, is based on the ethereum network – considered a market leader in the space – and “serves as a bridge between real-world data and smart contracts” VanEck said.

VSMA currently tracks five of the leading cryptocurrencies in the smart contract space outside of ethereum, comprising ethereum, solana, cardano, polkadot and TRON, with exposure capped at 30% of the portfolio.

Commenting on the launches, Martijn Rozemuller, CEO of VanEck, said: “With VSMA, we want to give investors the opportunity to invest in the smart contract ecosystem in a diversified way, limiting risks and benefiting from long-term trends."

Smart contracts are programmes on the blockchain that allow transactions to take place securely without intermediaries.

“They enable fast and secure transactions without intermediaries, making them an important component in decentralised finance and the future of finance,” he added.

“Smart contract platforms have significantly increased their market share in recent years compared to other blockchain applications such as pure payment applications, crypto exchanges or stablecoins.”

In April, VanEck launched three crypto ETNs, the VanEck Algorand (VGND) VanEck Terra ETN (VLNA) and VanEck FTX ETN (VFTX).

Theo Andrew joined ETF Stream as a senior reporter in September 2021. He has over four years of investment writing experience spanning pensions and retail investments, most recently at Citywire, where he was a senior reporter covering environmental, social and governance investing.