VanEck eyes new crypto ETF for onchain economy infrastructure

Leading asset management firm VanEck has submitted an application for an Onchain Economy Exchange-Traded Fund (ETF), according to a Jan. 15 filing with the US Securities and Exchange Commission (SEC).

This proposed fund aims to provide exposure to the broader crypto ecosystem by investing in companies and instruments connected to digital assets. The fund outlines a strategy that avoids direct investments in cryptocurrencies.

The Onchain Economy ETF is designed as an actively managed fund and builds on the model of existing crypto equity funds but introduces a fresh branding strategy. According to the filing, the fund plans to allocate at least 80% of its net assets to “Digital Transformation Companies” or digital asset instruments.

Onchain Economy ETF

VanEck identifies Digital Transformation Companies as critical players in the digital asset ecosystem. These include crypto exchanges, payment processors, blockchain miners, and software providers.

This group also includes companies involved in manufacturing crypto-related hardware or operating data centers, as well as businesses that hold digital assets or generate revenue from blockchain initiatives.

It added:

“Digital Transformation Companies may include small- and medium-capitalization companies and foreign and emerging market issuers, and the Fund may invest in depositary receipts and securities denominated in foreign currencies.”

The ETF’s scope extends to digital asset instruments, such as commodity futures contracts, exchange-traded commodity products, swaps, and pooled vehicles, offering exposure to significant digital assets by market capitalization.

However, the fund explicitly excludes stablecoins from its investment pool.

VanEck will select investments using detailed market analysis. This approach will assess companies based on strategic positioning and emerging trends within the digital asset sector.

Meanwhile, the ETF includes a subsidiary based in the Cayman Islands that facilitates investments in specific digital asset instruments. This arrangement allows the fund to comply with US federal tax regulations, which limit direct investments by registered funds in specific financial products.

VanEck’s filing notes that investments in this subsidiary will not exceed 25% of the fund’s total assets at the end of each quarter.