Will the SEC approve VanEck’s entry into the growing digital asset investment space?
On January 15, 2025, as a researcher focused on the digital assets landscape, I was thrilled to learn that VanEck, a reputable asset management company, submitted an application to the U.S. Securities and Exchange Commission for an exchange-traded fund (ETF) centered around the “Onchain Economy.” Matthew Sigel, head of VanEck’s digital assets research, made this announcement in a social media post that has since been removed. This move signifies VanEck’s bold ambition to tap into the burgeoning digital transformation sector, a space I personally find fascinating and full of potential.
Deleted a post on an ETF filing.
Details coming soon— matthew sigel, recovering CFA (@matthew_sigel) January 15, 2025
The planned ETF intends to invest a minimum of 80% of its resources in ventures related to the digital asset sector. This encompasses software developers, mining operations, cryptocurrency platforms, infrastructure service providers, payment systems, and other companies primarily focused on digital transformation – all collectively known as “Digital Transformation Enterprises.
VanEck detailed a strategic approach for these investments, with a strong focus on thorough fundamental research, current market tendencies, assessment of value, and each company’s position within the broader digital assets infrastructure. However, it’s important to note that this fund will not physically own cryptocurrencies. Instead, it intends to invest in products tied to digital assets, like futures contracts on commodities.
VanEck’s application is one of many recent movements within the ETF market, sparked by anticipation that the regulatory climate could become more hospitable towards cryptocurrencies during President Donald Trump’s term. In November 2024, Bitwise Asset Management submitted an application for its 10 Crypto Index Fund ETF, which monitors major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Last December, WisdomTree teamed up with 21Shares, Canary Capital, and Bitwise in filing applications for Exchange-Traded Funds (ETFs) that focus on specific digital assets such as XRP (XRP). Additionally, Grayscale Investments requested the Securities and Exchange Commission (SEC) to transform its existing Solana Trust into an ETF. Furthermore, REX Financial introduced the REX Crypto Equity Premium Income ETF, which uses a covered-call strategy to generate income from stocks related to cryptocurrencies.
These advancements show an increasing curiosity in digital assets from the financial sector, along with their readiness for any forthcoming regulatory guidance. While the Securities and Exchange Commission (SEC) considers these proposals, the industry is on the brink of a possible transformation, which might significantly alter institutional and retail investment opportunities in cryptocurrencies.
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2025-01-16 17:43