What Happened?
Asset management company VanEck has been approved to launch the “Onchain Economy ETF,” focusing on blockchain infrastructure and related assets, including exchanges, mining companies, and data centers.
The VanEck Onchain Economy ETF plans to use an overseas subsidiary located in the Cayman Islands for indirect investments. This structure allows it to bypass U.S. tax restrictions while ensuring compliance with U.S. regulatory requirements.
As the global economy transitions towards digitalization, demand for ETFs related to blockchain infrastructure and crypto assets is increasing. The reforms initiated by U.S. President Trump have prompted issuers to submit over 10 ETF applications covering fields related to cryptocurrencies and NFTs.
VanEck Onchain Economy ETF Approved
Asset management firm VanEck recently received approval from the U.S. Securities and Exchange Commission (SEC) and plans to launch the “Onchain Economy” ETF on May 14. This fund will focus on investments in blockchain infrastructure and related assets.
According to Matthew Sigel, head of VanEck’s digital asset research department, the fund’s ticker is “NODE,” and its goal is to hold 30 to 60 assets related to blockchain economy companies. These include exchanges, mining companies, data centers, consumer-oriented companies, asset management firms, and businesses holding cryptocurrencies. Additionally, 25% of the fund’s assets will be invested in digital asset exchange-traded products (ETPs).
Digital Asset Exchange-Traded Products (ETPs): Digital asset exchange-traded products are financial products listed and traded on exchanges, typically valued in relation to digital assets (such as Bitcoin and Ethereum). The purpose of these products is to allow investors to indirectly invest in the digital asset market without needing to directly hold or manage cryptocurrencies.
Increased Demand for Crypto-Related ETFs
In the past two years, more investment firms have been actively promoting digital asset ETFs and seeking approval from the U.S. SEC. According to Sigel, as the global economy undergoes a digital transformation, there is a growing demand for ETFs that can provide investments related to “blockchain infrastructure” and “crypto assets.”
This trend is significantly correlated with the election of U.S. President Donald Trump. After taking office, Trump ordered a major reform of the SEC. As these reforms progressed, issuers have submitted over 10 ETF applications, including those for Solana, XRP, and Litecoin.
Additionally, the digital asset investment firm Canary Capital has even submitted an application to launch the “PENGU ETF,” which involves the Pudgy Penguins project and is also the first cryptocurrency ETF related to NFTs.
According to foreign media reports, a survey conducted among financial advisors indicated that cryptocurrency ETFs have become one of the most interesting investment areas for advisors, as they believe crypto-related ETFs will be important investment targets in the future.
The VanEck Onchain Economy ETF is expected to begin trading on May 14 and plans to use its overseas subsidiary based in the Cayman Islands for indirect investments in products such as commodity futures, swaps, and pooled investment vehicles, ensuring legal compliance while avoiding U.S. tax restrictions.
Source: Decrypt, CoinDesk