Ether & Certificate - a successful symbiosis?
Vontobel offers investors access to the crypto currency "ether" via an open-end participation certificate. The listed certificate enables investors to participate simply and transparently in the price development of ether.
For many investors, the market for crypto currencies has been an interesting and novel investment alternative for years. Vontobel was the first issuer in German-speaking countries to make the simple and transparent investment in popular crypto currencies accessible to all capital market investors as part of its participation certificates on Bitcoin and Bitcoin Cash. With the issue of the tracker certificate in the crypto currency "ether", investors in Germany and Switzerland are offered a further alternative to participate in the development of the crypto market in the traditional securities custody account.
The Ether Tracker Certificate: How it works
With the Vontobel tracker certificate, investors participate in the price performance of ether* without having to have access to the Ethereum network or an ether wallet themselves. Accordingly, the risk of a loss of ether due to hacker attacks, technical problems, improper handling or the failure of the ether depositary does not lie with the investor. As with most tracker certificates offered, however, investors bear the price risk of the underlying security on one hand but also the default risk of the issuer.
Vontobel now offers the first tracker certificate on ether with unlimited duration - a so-called Voncert Open End. The product enables an unlimited** participation of almost 1:1 in price gains and losses of the ETH.
The well-known virtual marketplaces CoinBase Prime, BitStamp and Kraken serve as "reference exchanges" for the participation certificate in the crypto currency "ether" in US dollars.
The first trading day of the new Open End Certificate on the stock exchange is expected to be Monday, 13 May 2019. From this date, investors will be able to trade the certificate in the secondary market via their commercial bank or online broker and purchase or sell it at the respective bid/ask price.
In order to make it easier for investors and interested parties to enter the Ethereum universe, a special series on the functioning, background and development possibilities of the Ethereum will be published in the coming weeks.
* Ether is the payment token (i.e. "currency") within the Ethereum network. Ethereum is a distributed system in the field of financial technology that offers the creation, administration and execution of decentralized programs or contracts (so-called smart contracts) in its own block-chain infrastructure.
** The term is virtually unlimited, subject to termination by the issuer or an exercise by the investor.