VanEck launches ‘Onchain Economy’ ETF

VanEck’s foray into the burgeoning digital economy continues with the launch of the VanEck Onchain Economy ETF (NODE). This actively managed ETF, listed on the Cboe exchange, offers diversified exposure to the blockchain ecosystem. Its investment strategy encompasses companies directly involved in blockchain technologies, including miners, exchanges, infrastructure providers, and fintech platforms focused on cryptocurrencies. The fund’s scope extends to companies publicly expressing intentions to engage in the blockchain space, as evidenced by official filings and public communications.

NODE’s investment approach is actively managed, allowing for dynamic adjustments to its holdings. While it invests in crypto-related financial instruments, it notably avoids direct cryptocurrency holdings. Portfolio manager Matthew Sigel emphasizes the fund’s adaptive nature, continuously updating its investable universe to include new entrants through IPOs, spinouts, or strategic shifts. A key aspect of the strategy involves managing beta and volatility to maintain responsible exposure to Bitcoin and the broader onchain economy. This involves avoiding over-allocation to high-beta assets during market exuberance, preserving capital for future opportunities.

This launch follows VanEck’s earlier introduction of the VanEck Digital Transformation ETF (DAPP), a passively managed ETF tracking companies in the digital asset space. DAPP currently boasts $185 million in net assets. These developments highlight the growing interest in crypto-related investments, reflected in the numerous ETF filings submitted to the SEC. The increased activity in ETF filings follows a perceived relaxation of regulatory scrutiny under previous administrations. VanEck’s ambitions extend beyond ETFs tracking existing companies; they have also applied for approval to list an ETF holding BNB Chain’s native token. This demonstrates a comprehensive strategy to capitalize on various segments of the evolving digital economy and its associated technologies. The NODE ETF represents a significant step in providing investors with accessible and diversified exposure to the rapidly expanding onchain economy.