VanEck’s recently launched BItcoin Trust is a total flop, based on initial investment interest. | Source: Shutterstock
Following the divisive launch of a so-called “Limited ETF” from the fund manager VanEck, the crypto-focused offering has fallen short of impressive, citing just a single issuance of the instrument with a total of 4 BTC under management…
The data was relayed via crypto analyst and commentator, Alex Krüger, who pointed out that the net assets held under the Bitcoin Trust 144A Shares, amounted to little more than $41,000.
Three days after launch, the VanEck bitcoin trust for institutional investors has reportedly managed to issue a whopping 1 (one) basket. It has 4 bitcoins or $41,400 in assets under management. Massive. pic.twitter.com/TUePbLVqBi
— Alex Krüger (@krugermacro) September 10, 2019
This lack of demand is pretty shocking, especially considering the initial enthusiasm surrounding the launch. Following VanEck’s announcement of the new instrument – which was described by the wall street journal as, “a van version of a crypto ETF” – bitcoin flew into a frenzy posting an impressive $450 rally. Coincidence or not, many ascribed the short run to the highly-anticipated launch of a crypto ETF.
Others were slightly fairer to VanEck’s nascent product. Analyst Tom Lee noted that it was “too early to judge” its success – a viewpoint shared by quite a few on Twitter. However, one Twitterati associated the lackluster performance to a reduction of growth within the crypto industry itself. Krüger quickly retorted by noting that this was just one instance of a “bad launch of a product for which there’s not much demand.”
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