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VanEck Files for SEC Approval of On-Chain Economy ETF Targeting Companies Linked to Cryptocurrency
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Asset management firm VanEck is making strides in the crypto investment space by filing to launch its “On-chain Economy” Exchange-Traded Fund (ETF), targeting the burgeoning digital asset market.
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Unlike many crypto ETFs, this fund will focus on companies involved in cryptocurrencies without holding any digital currencies directly, which sets it apart in an increasingly volatile market.
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“The Fund does not invest in digital assets or commodities directly,” stated VanEck in its official filing, emphasizing its strategy to leverage traditional assets and companies linked to the crypto ecosystem.
VanEck files for a new ETF that focuses on digital transformation companies and digital asset instruments, steering clear of direct crypto investments.
New VanEck ETF Plans to Avoid Direct Crypto Holdings
According to a January 15 filing, the fund will allocate at least 80% of its net assets to “Digital Transformation Companies” and “Digital Asset Instruments.” This strategic allocation enables investors to gain exposure to the crypto sector while mitigating the risks associated with direct cryptocurrency investments.
VanEck explained that digital transformation companies operate in areas such as crypto exchanges, payment gateways, crypto mining, or other infrastructures that support these activities. These firms not only facilitate crypto transactions but also include those that hold significant crypto assets or generate revenue from digital asset projects, enhancing the fund’s diversified investment portfolio.
Meanwhile, Digital Asset Instruments refer to financial products such as commodity futures, options, and other exchange-traded products that provide exposure to several cryptocurrencies without directly holding them.
“The Fund does not invest in digital assets or commodities directly,” the company emphasized in its filing, reaffirming its strategy to focus on associated companies rather than deal directly with the inherent risks of cryptocurrency ownership.