VanEck Launches New ETF for Indirect Crypto Exposure
VanEck has introduced a new ETF that lets investors tap into the digital asset market without owning crypto directly. The VanEck Onchain Economy ETF, wiht the ticker NODE, aims to provide exposure to companies driving the digital transformation.
Launched on may 14, NODE focuses on public firms involved in blockchain, such as miners, exchanges, and fintech companies. The fund will include 30 to 60 companies, selected from over 130 options. It won’t hold cryptocurrencies but can invest up to 25% in crypto-linked products like Bitcoin ETFs.
These investments will be made via a Cayman Islands subsidiary, ensuring compliance with U.S. tax laws. This setup allows NODE to indirectly access crypto-related products like swaps and futures. The fund won’t invest in stablecoins and will limit subsidiary exposure to 25% of assets quarterly.
Matthew Sigel, VanEck’s Head of Digital Assets Research, notes that NODE offers diversification and liquidity. It provides a lower-volatility option compared to direct crypto investments. The fund charges a 0.69% management fee and complements VanEck’s existing Digital Transformation ETF.
The launch comes as institutional interest in blockchain grows. VanEck has also filed for ETFs tied to individual digital assets like Avalanche (AVAX) and Binance Coin (BNB), showing its commitment to expanding in the crypto space.
