VanEck Unveils New Onchain Economy ETF to Support Digital Asset Infrastructure
VanEck has announced the launch of a new exchange-traded fund (ETF) that focuses on companies dedicated to developing the infrastructure for digital assets, rather than direct cryptocurrency investments. This innovative financial product is named the Onchain Economy ETF.
Investment Focus and Strategy
The Onchain Economy ETF plans to allocate a minimum of 80% of its assets to “Digital Transformation Companies” and various digital asset instruments. These companies encompass a range of sectors, including cryptocurrency exchanges, payment processors, mining operations, and other key providers of essential infrastructure services for the growing digital asset ecosystem.
SEC Filing and Investment Rationale
In a recent filing with the U.S. Securities and Exchange Commission (SEC), VanEck detailed that the fund would also invest in firms offering vital technology, infrastructure, and data center capabilities that support digital asset operations. The selection process for these Digital Transformation Companies will be based on a blend of fundamental analysis, market trends, the company’s strategic positioning within the digital asset realm, and valuation metrics.
Targeting Major Digital Assets
For the digital asset instruments component, the fund advisor aims to target investments in the largest digital assets by market capitalization, deliberately excluding stablecoins. This approach indicates a focus on more volatile, growth-oriented assets that could potentially yield higher returns.
Subsidiary in the Cayman Islands
The Onchain Economy ETF plans to establish a subsidiary in the Cayman Islands to oversee specific digital asset investments. Notably, exposure to these investments will be limited to 25% of total assets each quarter to maintain compliance with regulatory standards.
Leadership Insights
Though a recent announcement by Matthew Sigel, VanEck’s head of digital assets, was deleted, it was revealed that he will be leading the fund, with a primary aim of facilitating long-term capital growth through strategic investments in digital asset instruments.
Recent Developments: Solana Staking Rewards
In addition to the ETF announcement, VanEck introduced Solana staking rewards for European investors earlier this week through a Solana exchange-traded note (ETN). This product will reinvest staking rewards on a daily basis, although it will be accessible only to European investors for now.
Daily Reinvestment of Staking Rewards
VanEck asserted that the Solana staking rewards will be reflected daily in the net asset value of its VSOL product, which currently has a value of $73.9 million. A 25% fee will apply to the staking rewards, and the adjusted rewards will be integrated into VSOL’s end-of-day net asset value by 4 p.m. CET.
