Adjusted product offering on Ether

Adjusted product offering on Ether

29 March 2021Reading time: 3 minutes

In order to allow investors to continue participating in the performance of Ether, Vontobel is issuing two new tracker certificates on the cryptocurrency. At the same time, Vontobel is terminating the existing Ether Tracker Certificate on Ether (CH0471406626) effective on April 30th, 2021. For details on what investors in the existing certificate or those planning a new entry can do, please read the blog post.

The cryptocurrency market has been an interesting investment alternative for many investors for years now. With increasing popularity, new opportunities for investing in cryptocurrencies have emerged. One of them is investing in tracker certificates that track the performance of cryptocurrencies.

Several years ago, 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 (CH0471406626) will be terminated effective on April 30th, 2021. The last trading day is April 27, 2021. However, in order to allow investors to continue to participate in the performance of this cryptocurrency, new tracker certificates with adjusted terms will be issued.

1. Tracker certificate on Ether on the secondary market

One of the certificates is being issued directly into the secondary market - and can be acquired and traded directly on the SIX Swiss Exchange starting on March 29, 2021. The subscription ratio of 1:10 also makes this product acquirable for investors who want to participate in the Ether price performance with a small capital outlay and/or are planning a new entry.

2. Exchange offer

For investors holding the old tracker certificate on Ether (CH0471406626) in their portfolio, an exchange offer exists. This means that until noon on April 21, 2021, their positions in the old certificate can be exchanged for positions in the new certificate. Should investors choose this option, they will receive one certificate of the new product for each certificate of the old product. * Affected investors will receive the exchange offer via their custodian bank as (electronic) mail.

Conditions of the new certificates

For both new certificates, a management fee of 3.75% p.a. is charged. Due to the new cost structure, the issuer is thus able to reflect the applicable capital requirements that apply to investments in cryptocurrencies.

The new certificates allow investors to participate 1:1 - taking into account the management fee and ratio - in the price performance of Ether and enjoy a Moody's rating of Aa3 for the issuer.

Vontobel continues to act as custodian for the underlying coins of the new certificates and - unlike its competitors - continues to refrain from including a clause in the term sheet that passes on the risk of any cyber attack or theft of the coins to the investor. With the Vontobel tracker certificate, investors thus participate in the price performance of the 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 custodian does not lie with the investors.


* This exchange offer does not constitute a public offer pursuant to Art. 35 of the Federal Act on Financial Services ("FINSA") and is therefore not subject to the prospectus requirements of the FINSA. It is exclusively available to investors who hold the PRODUCT in their custody account. One (1) VONCERT Open End on Ehter (the "PRODUCT") will be exchanged for one (1) Open End Tracker Certificate on Ether (the "SUCCESSOR PRODUCT"). Investors who do not wish to exchange their PRODUCTS for the SUCCESSOR PRODUCT will automatically receive the redemption in cash on May 7, 2021 (the date of redemption).

21/03/2023 22:50:51


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