The dwarf, incensed at losing the treasure, pronounced a most dreadful curse upon it and its possessors, saying that it would be the death of those who should get hold of it. Thus Hreithmar, its first owner, was slain in his sleep by his son Fafnir, who carried the treasure away to the Gnita Heath, where, having taken the form of a dragon, he guarded it.

The story, as given in the older Norse versions, is in most respects more original than in the "Nibelungenlied". It relates the history of the treasure of the Nibelungs, tracing it back to a giant by the name of "Hreithmar", who received it from the god "Loki" as a compensation for the killing of the former's son "Otur", whom Loki had slain in the form of an otter.

Andwari pronounces a terrible curse upon the treasure and its possessors, and this curse passes from Loki to the Giant Hreithmar, who is murdered when asleep by his two sons "Fafnir" and "Regin". The latter, however, is cheated out of the coveted prize by Fafnir, who carries it away to the "Gnita" heath, where he guards it in the form of a dragon.

The epic deals with the history of the treasure of the Nibelungs, and tells how a certain Hreithmar had it given him by the god Loki as a weregild for the slaying of the former’s son, Otur or Otter, who occasionally took the shape of that animal. Loki in his turn obtained the ransom from the dwarf Andwari, who had stolen it from the river-gods of the Rhine.

The "Thidreksaga" knows only the dragon fight but not the dwarfs, as is likewise the case with the Seyfrid ballad. Only in the Norse sources do we find a contamination. The story of Hreithmar and his sons, who quarrel about the treasure, resembles that of Schilbung and Nibelung in the "Nibelungenlied", and probably has the same source.

The full story of Sigurd’s ancestry it is unnecessary to deal with here, as it has little influence on the connexion of the story of the Volsungs with the Nibelungenlied. Sigurd came under the tutelage of Regin, the son of Hreithmar and brother of Fafnir, received the magic steed Grani from the king, and then was requested by Regin to assist him in obtaining the treasure guarded by Fafnir.