VanEck Files with SEC for On-chain Economy Crypto ETF
Asset management firm VanEck has applied to the U.S. Securities and Exchange Commission (SEC) for approval to launch its “on-chain economy” exchange-traded fund (ETF).
The fund aims to invest primarily in companies and instruments related to the crypto industry without investing directly in cryptocurrencies.
New VanEck ETF plans to avoid holding cryptocurrencies directly
According to reports on January 15 Archivethe fund allocates at least 80% of its net assets to “digital transformation companies” and “digital asset vehicles.”
VanEck explained that digital transformation companies operate in areas such as cryptocurrency exchanges, payment gateways, cryptocurrency mining, or infrastructure related to these activities. These companies may also include those that hold large amounts of crypto assets or generate revenue from digital asset projects.
At the same time, digital asset instruments refer to financial products such as commodities futuresoptions and other exchange-traded products that provide exposure to cryptocurrencies.
“The fund does not invest directly in digital assets or commodities,” the company said in the filing.
Still, the company has filed for other cryptocurrency ETFs in recent months. November, VanEck submitted a proposal to the Chicago Board Options Exchange introduce Solana The ETF follows a previous filing with the SEC.
However, last September, VanEck closes its Ethereum futures ETF. The reason may be that Ethereum-based ETFs have been underperforming compared to their Bitcoin counterparts.
VanEck head of digital asset research Matthew Sigel first announced the new ETF in a now-deleted X post.
“Deleted post regarding ETF filings. Details coming soon,” Siegel release after.
The On-Chain Economic Fund will target companies with large digital asset project revenues or holding large amounts of digital assets, selecting them through a combination of fundamental analysis and market trends.
Another fund is similar VanEck’s on-chain economic fund is bitwise “Bitcoin Standard, Inc. ETF”. The fund will only invest in companies that hold significant amounts of Bitcoin as part of the company’s financial reserves.
VanEck’s new fund will also invest in digital asset instruments through a Cayman Islands-based subsidiary. This will help the fund comply with U.S. tax regulations while obtaining investments in these vehicles.
“A fund’s investments in subsidiaries generally will not exceed 25% of the value of the total assets at the end of each quarter of the fund’s fiscal year,” VanEck said in the filing.
VanEck’s documentation is at SEC Recently Delayed Decision on Bitwise 10 Cryptocurrency Index ETF to March. The regulator said it needed more time to review.
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