VanEck has submitted a proposal to the SEC for a new ETF called the "On-chain Economy," focusing on companies and instruments related to the crypto industry without direct cryptocurrency investments.
Focus on Digital Transformation
The ETF aims to allocate at least 80% of its net assets to Digital Transformation Companies and Digital Asset Instruments. This includes crypto exchanges, payment gateways, and mining operations, as well as financial products like commodity futures and options linked to crypto.
Advantages and Limitations of the Fund
The fund will not directly hold cryptocurrencies or commodities to comply with US tax regulations. Investments will be made through a subsidiary in the Cayman Islands, limited to 25% of the fund's total assets at the end of each fiscal quarter. This balances crypto exposure with regulatory requirements.
Context and Developments
VanEck has been active in the crypto ETF space, previously filing for Solana ETFs and other products, but recently closed its Ethereum futures ETF due to underperformance. The new ETF targets companies that generate significant revenue from digital asset projects or hold substantial digital assets.
VanEck's proposal reflects increasing interest in indirect exposure to digital assets, indicating the evolution of the crypto industry.
