The ETF will allocate at least 80% of its net assets to entities classified as “Digital Transformation Companies” and “Digital Asset Instruments,” according to VanEck’s filing.
VanEck ETF to Invest in Crypto-Adjacent Businesses
VanEck clarified that “Digital Transformation Companies” are businesses tied to activities such as crypto exchanges, payment gateways, mining, or related infrastructure. This category also includes firms with substantial crypto holdings or significant revenue from digital asset projects.
In contrast, “Digital Asset Instruments” cover financial products like commodity futures, options, and other exchange-traded products providing indirect exposure to cryptocurrency markets.
“The Fund does not invest in digital assets or commodities directly,”
VanEck stated, emphasizing its strategy to avoid direct crypto ownership while leveraging market-related opportunities.
VanEck’s Previous Crypto ETF Efforts
This filing follows VanEck’s recent moves to introduce other crypto-related ETFs. In November 2024, the firm proposed Solana ETFs in collaboration with the Chicago Board Options Exchange, extending its efforts in the sector.
Solana ETF Filings. Source: James SeyffartHowever, the company faced setbacks, such as the closure of its Ethereum futures ETF in September 2024, reportedly due to underperformance compared to Bitcoin-based ETFs. Despite these challenges, VanEck continues to expand its offerings, reflecting its commitment to the growing crypto economy.
Targeting Companies with Crypto Revenue and Assets
The proposed ETF will focus on companies with significant exposure to digital asset projects or large crypto holdings. These firms will be selected based on fundamental analysis and prevailing market trends.
In a now-deleted post on X , Matthew Sigel, VanEck’s head of digital assets research, hinted at the filing, saying, “Details coming soon.”
VanEck OnChain ETF Tweet. Source: Matthew SigelSubsidiary Structure to Comply with US Tax Rules
To gain exposure to digital asset instruments, the fund will operate through a subsidiary in the Cayman Islands. This structure allows compliance with US tax regulations. However, VanEck stated that the subsidiary’s investments would not exceed 25% of the fund’s total assets at the end of each fiscal quarter.
SEC Extends Decision on Bitwise ETF
VanEck’s filing comes amid broader ETF developments. The SEC recently delayed its ruling on Bitwise’s “10 Crypto Index ETF” until March 2025, citing the need for further review. Similar to VanEck’s strategy, Bitwise’s ETF focuses on crypto-related companies, particularly those with Bitcoin reserves.
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