VanEck Avalanche ETN
- Exposure to one of the fastest, low-cost and eco-friendly smart contract platforms
- 100% collateralized with AVAX in cold storage at a regulated custodian
- Tradeable on regulated stock exchanges and traditional brokers
VAVA
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ETN-Details
ETN-Details
Basis-Ticker: VAVAISIN: DE000A3GV1T7
TER: 1.50%
AUM: $16.0 M (as of 06-11-2024)
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Risk: You may lose money up to the total loss of your investment due to the extreme volatility of this asset class and the Main Risk Factors described below and additional risks described in the sales prospectus.
What is Avalanche?
Avalanche is a smart contract blockchain platform supported by Ava Labs, a team founded out of Cornell University. It uses a proprietary breakthrough consensus validation mechanism, allowing it to scale indefinitely by empowering an unlimited number of custom, application-specific blockchains called “Subnets.”
Who founded Avalanche?
Emin Gün Sirer is a Turkish-American computer scientist...
Emin Gün Sirer is a Turkish-American computer scientist...
What gives Avalanche value?
Avalanche is a platform for so-called “smart contracts,” which empower global...
Avalanche is a platform for so-called “smart contracts,” which empower global...
What is AVAX?
AVAX is the token underlying the Avalanche network. It is used, amongst others...
AVAX is the token underlying the Avalanche network. It is used, amongst others...
Why Invest in Avalanche ETN?
Avalanche contains a rare combination of strengths, explaining its meteoric rise.
Lightning fast
Thanks to its trailblazing consensus mechanism, Avalanche is able to continuously...
Thanks to its trailblazing consensus mechanism, Avalanche is able to continuously...
Capacity
Infinitely scalable across an unlimited number of custom, application-specific blockchains...
Infinitely scalable across an unlimited number of custom, application-specific blockchains...
Sustainable
Avalanche’s highly-efficient consensus algorithm and proof of stake security mechanism...
Avalanche’s highly-efficient consensus algorithm and proof of stake security mechanism...
Interoperable
Avalanche allows institutions and individuals to easily build custom blockchains...
Avalanche allows institutions and individuals to easily build custom blockchains...
Governable and democratic
Avalanche allows anyone to connect to its network, access its applications, and participate...
Avalanche allows anyone to connect to its network, access its applications, and participate...
A Dazzling Growth Story
Monthly active users more than tripled from 197,000 in September 2021 to over 800,000 in January 2022, 400,000 in January 2023.
Source: Avalanche. Data as of March 2023.
Total AVAX staked, which refers to the total amount of AVAX securing the network, is currently at 226MM AVAX representing 54% of total supply, which is 422MM AVAX. There are 326MM AVAX in circulation and 96MM locked supply.
NOTE: Total supply (422MM) = circulating supply (326MM) + locked supply (96MM). Locked supply is owned by individuals and entities who were early token holders in Avalanche and committed to lock-up periods governed by the protocol.
Source: Avalanche, Coinmarketcap. Data as of March 2023.
The number of projects building on the platform now exceeds 250 and total value locked on DeFi applications reached $841M as of March 23, 2023.
Source: Avalanche, Defi Llama. Data as of March 2023.
Also outside the financial sector, Avalanche is becoming the platform of choice. An example is Deloitte who chose Avalanche as the platform for natural disaster recovery in the US, and Mastercard, who has selected Ava Labs for its Mastercard Start Path Program.
Cutting-Edge Validation Mechanism
Avalanche's unique validation mechanism (“Avalanche Consensus”) is completely different from any consensus mechanisms to-date.
Quiescent
The system does not expand energy if there is no value-adding work to be done, contributing to its energy efficiency....
The system does not expand energy if there is no value-adding work to be done, contributing to its energy efficiency....
Scalable
It is infinitely scalable through an unlimited number of custom, application-specific blockchains called “Subnets”...
It is infinitely scalable through an unlimited number of custom, application-specific blockchains called “Subnets”...
Highly-secure
Due to low hardware requirements, it is easy for users to run their own node...
Due to low hardware requirements, it is easy for users to run their own node...
Avalanche Performance
Avalanche ETN by VanEck is based on the MVIS CryptoCompare Avalanche VWAP Close Index and closely tracks the avalanche price.
Source: VanEck, MVIS. The performance quoted represents past performance which is not a reliable indicator of future results. Future performance may be lower or higher than current performance. Investment returns will fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost.
Avalanche ETN Benefits
Avalanche ETN is Simple and Reliable
VanEck gives you exposure to Avalanche without the hassle and operational risk of private keys and unverified exchanges. In summary, Avalanche ETN by VanEck offers a number of significant advantages:
- Avalanche deposited in state-of-the-art cold storage1
- At Bank Frick & Co. AG, a custodian regulated under the “Law on Tokens and Trusted Technology Service Providers” ( “Blockchain Act”) and a holder of a “TT Token Depositary” license
- Insurance (up to certain level)
Every Euro invested into a Avalanche ETN by VanEck will be used to buy Avalanche
- Fully collateralized by physically buying Avalanche
- No lending of Avalanche
- No use of derivatives
Avalanche ETN can be bought/sold like a stock, which brings the following advantages:
- Central clearing reduces counterparty risk in settlement of transactions
- Transparency of issuer and investor documents
- Indicative net asset values (without excessive premiums or discounts)
- Sponsors/market makers enhance trading liquidity
- No need for private keys or to store digital assets on a wallet
- Can be integrated into your investment portfolio
- Only 1.5% annual all-in fees, making it one of the least expensive products of its kind.
Key Documents and Links
Main Risk Factors of an Avalanche ETN
Despite all the hype, digital assets are a highly risky investment. Below are key risk factors that need to be considered before making an investment in an Avalanche ETN.
The trading prices of many digital assets have experienced extreme volatility in recent periods and may well continue to do so. Digital assets were only introduced within the past decade and regulatory clarity remains elusive in many jurisdictions. Digital assets' value depends on such regulation remaining favorable, as well with the technological capabilities, the development of protocol networks, competition from other digital asset networks and from forks. Volatility can be strongly amplified by transactions from speculative investors, hedge funds and other large investors. You may experience losses if you need to sell your Shares at a time when the price of the underlying digital asset is lower than it was when you made your prior investment. Even if you are able to hold Shares for the long-term, your Shares may never generate a profit. This is a factor to take into account when considering an investment in an Avalanche ETN.
If the currency of the Product differs from the currency you invest in, your final return depends on the exchange rate between your investment currency and the currency of the Product. That is another factor to consider when investing in an Avalanche ETN.
Trading venues and systems used by market participants to trade AVAX may be subject to hacking and could result in loss of AVAX. That is another factor to take into consideration when making an investment in an Avalanche ETN.