Ether Tracker certificate
Vontobel has decided to terminate the existing tracker certificate “TRACK ETHER VON” on Ether (ISIN SE0012674208) effective on 31 May 2021. In order to enable investors to continue to participate in the performance of Ether, Vontobel is issuing a new tracker certificate on the cryptocurrency.
Tracker Certificates
Adjusted product offering on Ether
Over the last years, Vontobel launched tracker certificates on a number of different cryptocurrencies - for example, on Ether. In February, Vontobel began to revise its product offering relating to cryptocurrencies and adapt it to the prevailing regulatory environment. In this context, the existing tracker certificate on Ether “TRACK ETHER VON” (ISIN SE0012674208) will be terminated effective on 31 May 2021. The last trading day is 31 May 2021.
Investors who do not want to sell their existing positions early at the current bid price quoted on the market will automatically receive a cash redemption around 11 June 2021. However, in order to allow investors to continue to participate in the performance of this cryptocurrency, a new tracker certificate with adjusted terms will be issued.
New Exchange Traded Product
A new tracker certificate “TRACK ETHER II VON” (ISIN DE000VQ59HS0) will be issued with first day of trading on 1 April 2021. It will be listed on the Nordic Growth Market Exchange in Sweden (Nordic MTF Sweden) and can be traded directly via your bank or broker. The certificate is denominated and traded in Swedish Kronas (SEK).
Conditions of the new certificate
For the new certificate, a management fee of 3.75% p.a. is charged. Due to the new cost structure, Vontobel is thus able to reflect the applicable capital requirements that apply to investments in cryptocurrencies.
The new certificate allows investors to participate in the price performance of Ether - taking into account the management fee and ratio - and enjoy a Moody's rating of A3 (issuer rating) for the guarantor under the terms of the certificate (Vontobel Holding AG).
Vontobel continues to act as custodian for the underlying coins of the new certificate and - unlike some of its competitors - continues to refrain from passing on the risk of any cyber-attack or theft of the coins to the investor under the terms of the certificate.
With the Vontobel tracker certificate, investors thus participate in the price performance of Ether without the need 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 custodian does not lie with the investors.
Tracker Certificates
Risks
This information is in the sole responsibility of the guest author and does not necessarily represent the opinion of Bank Vontobel Europe AG or any other company of the Vontobel Group. The further development of the index or a company as well as its share price depends on a large number of company-, group- and sector-specific as well as economic factors. When forming his investment decision, each investor must take into account the risk of price losses. Please note that investing in these products will not generate ongoing income.
The products are not capital protected, in the worst case a total loss of the invested capital is possible. In the event of insolvency of the issuer and the guarantor, the investor bears the risk of a total loss of his investment. In any case, investors should note that past performance and / or analysts' opinions are no adequate indicator of future performance. The performance of the underlyings depends on a variety of economic, entrepreneurial and political factors that should be taken into account in the formation of a market expectation.