VanEck introduces $30M PYTH ETN for European markets

VanEck has launched a new exchange-traded note (ETN) on Euronext Paris and Euronext Amsterdam, providing European investors with exposure to the Pyth Network, a decentralized oracle protocol known for its potential to support DeFi applications. 

Based on VanEck’s statement, the PYTH-based ETN, listed under the ticker VYPT, is valued according to the MarketVector Pyth Network VWAP Close Index. 

This index tracks the price of PYTH indirectly, helping maintain stability since its launch, though the product remains marked by high volatility. 

VanEck’s recent focus on expanding its crypto portfolio includes this PYTH ETN, which follows October’s $30 million venture fund targeting crypto startups and a partnership with Kiln for Solana staking. 

According to Martijn Rozemuller, CEO of VanEck Europe, the new PYTH ETN reflects the “increasing significance” of smart contracts in finance. 

“Smart contracts… are gaining increasing significance in the financial world… and oracle networks play a crucial role in enabling [their] real-world use,” Rozemuller said. 

He added that with the PYTH ETN, VanEck aims to allow investors to “participate in the development of… Pyth Network,” emphasising the protocol’s essential role in decentralized finance. 

While similar to ETFs, the PYTH ETN is distinct in structure, backed by assets stored in VanEck’s cold storage. 

It comes with a 1.5% expense ratio and is now available across 15 European countries, but VanEck highlights a “risk of extreme volatility” due to the speculative nature of the underlying asset. 

This launch illustrates VanEck’s strategy to deepen its reach into DeFi-oriented markets. 

According to VanEck, Pyth’s decentralized oracle technology could revolutionize the financial sector, aligning with broader trends that point to the critical role of oracle networks in future financial applications.