Asset manager VanEck has launched its new VanEck Pyth ETN on the Euronext Amsterdam and Euronext Paris exchanges, giving investors the ability to access the performance of the Pyth Network’s PYTH token without needing to directly purchase or store the Cryptocurrency.
This launch responds to a growing interest in the use of external data for smart contracts, particularly in the financial sector.
The Pyth Network is a decentralized oracle protocol that makes it easy to connect smart contracts with real-world data, allowing them to interact with external information and perform secure off-chain calculations.
Without oracle technology, blockchains would be isolated systems, unable to access external data such as asset prices, weather or sports results. This data is essential for applications in sectors such as decentralized finance (DeFi) and insurance.
Specialization in high frequency data for the financial market
The Pyth Network, designed to provide high-frequency data, stands out for its special focus on financial markets, which require information in real time. The network uses first-party data from exchanges and trading firms, ensuring transparency and a verifiable aggregation process.
Additionally, Pyth rewards data providers based on the accuracy and value of the information, incentivizing the delivery of high-quality, reliable data.
A safe and regulated product
The VanEck Pyth ETN tracks the performance of the MarketVector Pyth Network VWAP Close index, linked to the price of the PYTH token. This ETN is fully backed, with underlying assets held in cold storage to ensure security.
For custody, VanEck collaborates with Bank Frick, a regulated entity in Liechtenstein, which ensures a high standard of protection of digital assets in its ETNs. It should be noted that the ETN has an expense ratio of 1.5% and is subject to high volatility.
Ease of access for European investors
The VanEck Pyth ETN is available in 15 European countries, including Germany, France, Switzerland, Spain and Italy, and allows investors to buy and sell the product on regulated exchanges, as with other traditional investment products.
According to Martijn Rozemuller, CEO of VanEck Europe, this launch allows investors to “participate in the development of oracle networks like Pyth, which have the potential to become crucial infrastructure for DeFi applications.”
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