VanEck Seeks SEC Approval for New Crypto-Focused ETF
VanEck files with the SEC to launch its "On-chain Economy" ETF, targeting crypto-related firms and instruments without direct crypto holdings.
VanEck has filed for approval with the US Securities and Exchange Commission (SEC) to introduce its new “On-chain Economy” Exchange-Traded Fund (ETF). This fund aims to focus on businesses and financial instruments linked to the crypto industry, without directly holding cryptocurrencies.
According to a filing on January 15, the ETF plans to allocate at least 80% of its net assets to what VanEck calls “Digital Transformation Companies” and “Digital Asset Instruments.” These companies include crypto exchanges, payment gateways, mining operations, and firms managing significant crypto holdings or generating revenue through digital asset projects. Meanwhile, Digital Asset Instruments cover financial products like commodity futures, options, and other exchange-traded products tied to crypto exposure. VanEck emphasized that the fund will not invest directly in cryptocurrencies or commodities.
The fund will also invest through a subsidiary based in the Cayman Islands, allowing compliance with US tax regulations while gaining exposure to digital asset instruments. The subsidiary's investments will be capped at 25% of the fund's total assets at the end of each fiscal quarter. This structure is designed to balance exposure to the crypto sector with regulatory requirements.
VanEck has been active in filing for crypto-related ETFs. In November, it submitted a proposal with the Chicago Board Options Exchange to launch Solana ETFs, building on earlier applications to the SEC. However, last September, VanEck shut down its Ethereum futures ETF after persistent underperformance compared to Bitcoin-based ETFs.
The on-chain economy fund will target companies with substantial revenue from digital asset projects or significant holdings of digital assets. It will use a combination of market trends and fundamental analysis to select investments. This strategy mirrors other funds, such as Bitwise’s “Bitcoin Standard Corporations ETF,” which focuses on firms holding large Bitcoin reserves.
VanEck’s head of digital assets research, Matthew Sigel, first mentioned the new ETF in a now-deleted post on X (formerly Twitter). He later clarified with a follow-up post, “Deleted a post on an ETF filing. Details coming soon.”
The filing arrives as the SEC continues to review similar proposals. Recently, the SEC postponed its decision on Bitwise’s 10 Crypto Index ETF, citing the need for additional review time. As crypto and blockchain technology evolve, funds like VanEck’s reflect the growing interest in indirect exposure to digital assets.
