TLDR
- VanEck submitted an SEC filing for their “Onchain Economy” ETF on January 15, targeting companies in the digital asset sector
- The ETF would allocate 80% of funds to crypto-related businesses but won’t directly hold cryptocurrencies
- Investment targets include crypto exchanges, miners, software developers, and payment companies
- The filing joins recent ETF applications from Bitwise, WisdomTree, and Grayscale
- VanEck’s move aligns with increased institutional interest in regulated crypto investment products
Investment management firm VanEck has filed paperwork with the Securities and Exchange Commission seeking approval for a new exchange-traded fund called the “Onchain Economy ETF.” The January 15 filing marks another major financial institution’s push into the digital asset investment space.
The head of VanEck’s digital assets research, Matthew Sigel, revealed the filing through a social media announcement that was subsequently deleted. According to the application documents, the proposed ETF aims to capture the growth potential of companies operating within the digital asset ecosystem.
Unlike some crypto-focused investment vehicles, VanEck’s proposed ETF won’t directly hold cryptocurrencies. Instead, it plans to invest at least 80% of its assets in companies that are actively involved in or benefiting from digital transformation technologies.
The fund’s investment strategy targets a diverse range of businesses within the crypto economy. These include cryptocurrency exchanges that facilitate digital asset trading, mining companies that provide essential network infrastructure, and software developers creating blockchain applications.
Payment processing firms and companies providing technical infrastructure for the digital asset industry are also among the planned investment targets. VanEck has termed these potential investment targets “Digital Transformation Companies” in its filing documentation.
To select investments, VanEck plans to employ a comprehensive analysis approach. This includes evaluating fundamental business metrics, studying market trends, assessing valuations, and considering each company’s role within the broader digital asset ecosystem.
While avoiding direct cryptocurrency holdings, the ETF plans to gain exposure to the sector through various financial products. These may include commodity futures contracts and other regulated instruments tied to digital asset performance.
The timing of VanEck’s application comes during a period of heightened activity in the crypto ETF space. Market observers have noted this increased activity might be connected to expectations of favorable regulatory changes under the current presidential administration.
Bitwise Asset Management preceded VanEck’s filing with their own application in November 2024. Their proposed 10 Crypto Index Fund ETF aims to track the performance of major cryptocurrencies including Bitcoin, Ethereum, and Solana through a regulated investment structure.
December 2024 saw additional ETF applications from several established financial firms. WisdomTree, 21Shares, and Canary Capital each submitted proposals for ETFs focused on specific digital assets, with particular attention to XRP-based investment products.
Grayscale Investments has also joined the trend, seeking regulatory approval to transform its existing Solana Trust into an ETF format. This conversion attempt reflects a broader industry movement toward more traditional investment structures for digital assets.
Taking a different approach, REX Financial has introduced the REX Crypto Equity Premium Income ETF. This fund employs a covered-call strategy on crypto-related stocks, offering investors an alternative way to generate income from the digital asset market.
The surge in ETF applications demonstrates growing institutional confidence in digital asset investments. These proposed funds could provide investors with regulated access to the crypto industry while maintaining traditional market protections.
VanEck’s filing is now under SEC review alongside numerous other digital asset ETF proposals. The regulatory body will assess each application based on its established criteria for market stability and investor protection.
The examination process typically involves detailed scrutiny of the proposed investment strategies, risk management procedures, and safeguards for investor interests. The SEC’s decisions on these applications could shape the future landscape of digital asset investment.
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