Crypto Quill

VanEck, a leading investment firm managing over $100 billion in assets, has introduced a new crypto-based exchange-traded note (ETN) in Europe that tracks Sui, a blockchain developed by former Meta engineers. This addition marks another step in VanEck’s expansion of its crypto product offerings, which include ETNs tied to Bitcoin, Ethereum, Avalanche, and Solana.

Sui Blockchain: A Rising Star

Launched in May 2023, Sui is a layer-one blockchain that simplifies smart contract deployment and boasts the ability to process multiple transactions simultaneously. With a current market cap of $8.8 billion, Sui has quickly risen to become the seventeenth-largest cryptocurrency. This rapid growth has garnered attention, with Evan Cheng, CEO and co-founder of Sui, expressing his excitement about the recognition the blockchain is receiving in traditional financial circles.

Cheng described the launch of the Sui ETN as a “vote of confidence” in the blockchain’s technology and a signal that traditional finance is starting to take the cryptocurrency seriously.

Exchange-Traded Notes (ETNs) vs. ETFs

The new Sui-based product is an exchange-traded note (ETN), which differs from an exchange-traded fund (ETF). While ETFs hold the underlying asset, ETNs are unsecured debt notes issued by a bank, tracking the performance of an index but not owning the underlying asset. This product is currently available only in Europe, reflecting the continent’s more developed regulatory landscape for crypto assets.

VanEck’s Expanding Crypto Portfolio

VanEck has launched over a dozen crypto ETNs in various European markets, with products based on Bitcoin, Avalanche, Ethereum, and Solana. According to Menno Martens, VanEck’s Crypto Specialist and Product Manager, the addition of Sui to their portfolio is a natural step, driven by the blockchain’s strong track record and technological innovations.

As the demand for diverse crypto investment products grows, this move by VanEck is further evidence of the increasing integration of digital assets into the traditional finance sector, especially as institutional adoption continues to rise.