VanEck Unleashes New ETF to Tap Into the Onchain Economy!

Dive Into the Digital Asset World Without Holding Crypto Directly

Hold onto your hats, folks! VanEck just dropped a bombshell with their latest exchange-traded fund, and it's set to shake up the digital asset scene. Say hello to the VanEck Onchain Economy ETF, or NODE, the gateway to the booming digital economy without the hassle of holding crypto directly. Buckle up, because this ride is just getting started!

On May 14, VanEck pulled the trigger on this beast of a fund, aiming to expose investors to the cream of the crop in "digital transformation companies and digital asset instruments." We're talking about an actively managed fund that zeroes in on public companies deep in the blockchain trenches. Crypto miners, exchanges, data centers, energy providers, and fintech firms using crypto tech? You name it, NODE's got it covered. They're handpicking between 30 to 60 companies from a pool of over 130, and they're not afraid to shake things up based on market trends and each firm's Bitcoin (BTC) connection. And guess what? While NODE won't hold cryptocurrencies directly, it can dive up to 25% of its assets into crypto-linked exchange-traded products like Bitcoin ETFs. Talk about a game-changer!

But how's NODE pulling this off? Through a slick Cayman Islands subsidiary, that's how! This move lets the fund play by U.S. tax rules while getting a piece of the crypto action through swaps and futures. NODE's keeping it clean, though - no stablecoins, and the subsidiary's exposure will stay capped at 25% of assets each quarter. Smart moves, VanEck, smart moves.

Matthew Sigel, VanEck's Head of Digital Assets Research, is all in on NODE's mission to deliver "diversification and liquidity" while offering a smoother ride than pure-play crypto strategies. "Categorizing assets by their bitcoin sensitivity lets us fine-tune the portfolio across market cycles," he said. It's like having a crystal ball for your investments!

And get this - NODE comes with a 0.69% management fee, making it a solid addition to VanEck's growing lineup of crypto-related products, including the passively managed Digital Transformation ETF. The timing couldn't be better, with institutional interest in blockchain infrastructure on the rise and traditional asset managers jumping on the on-chain economy bandwagon.

But wait, there's more! VanEck's not stopping at NODE. They've also filed for ETFs tied to individual digital assets like Avalanche (AVAX) and Binance Coin (BNB). It's clear as day - VanEck is all-in on expanding their crypto investment empire, and we're here for it!