VanEck, a prominent asset management firm, has filed a new ETF proposal targeting the crypto sector while avoiding direct cryptocurrency holdings. According to a filing on January 15, the fund will allocate at least 80% of its net assets to “Digital Transformation Companies” and “Digital Asset Instruments.”
Digital transformation companies are defined as those involved in crypto exchanges, payment gateways, mining, or related infrastructure. The scope also includes firms with significant crypto holdings or revenue derived from digital asset projects. Meanwhile, digital asset instruments include financial products like commodity futures, options, and exchange-traded products tied to crypto performance.
This marks a strategic shift for VanEck, which has previously explored various cryptocurrency-related funds. In November, the firm proposed Solana ETFs to the SEC, following earlier filings for Bitcoin-focused funds. However, VanEck shut down its Ethereum futures ETF in September 2024, citing consistent underperformance compared to Bitcoin-based ETFs.
VanEck’s head of digital assets research, Matthew Sigel, initially announced the fund in a now-deleted post on X (formerly Twitter), hinting at ongoing developments. The fund, referred to as the “on-chain economy fund,” aims to invest in companies with substantial revenue exposure to digital asset projects.
The ETF will also utilize a Cayman Islands-based subsidiary to invest in digital asset instruments, adhering to U.S. tax regulations. VanEck emphasized that this subsidiary’s investments would not exceed 25% of the fund’s total assets by the fiscal year’s end.
This innovative approach mirrors similar strategies like Bitwise’s “Bitcoin Standard Corporations ETF,” which focuses on companies holding Bitcoin as part of their financial reserves.
The announcement comes amid heightened regulatory scrutiny. The SEC recently postponed its decision on Bitwise’s 10 Crypto Index ETF, citing the need for additional review time.
Also Read: VanEck’s Matthew Sigel: Solana ETF Approval Odds Could Exceed 77%, Sparking Investor Interest
VanEck’s move underscores the growing demand for crypto-related investment vehicles while navigating the complex regulatory environment. The fund offers an opportunity for investors to tap into the digital asset ecosystem without directly holding cryptocurrencies, appealing to those seeking exposure to the sector with reduced risk.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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