VanEck Pursues SEC Approval for Revolutionary Onchain Economy ETF

Will the SEC approve VanEck’s entry into the growing digital asset investment space? On January 15, 2025, asset management company VanEck officially filed an application with the U.S. Securities and Exchange Commission (SEC) for the new Onchain Economy exchange-traded fund (ETF). This move reflects the firm’s determination to tap into the rapidly evolving digital transformation sector and diversify their investment offerings.

Matthew Sigel, the head of digital assets research at VanEck, teased the filing in a now-removed social media post, signaling the company’s ambitious intentions. The proposed ETF aims to allocate at least 80% of its assets toward businesses and products within the digital asset ecosystem. This includes a diverse range of entities from software developers and mining firms to cryptocurrency exchanges and payment processing companies, collectively labeled as Digital Transformation Companies.

Notably, the fund will not directly hold cryptocurrencies. Instead, it intends to invest in various digital asset products, including commodity futures contracts. VanEck’s approach encompasses a strategic selection process that emphasizes several critical factors, including

  • Fundamental research
  • Market trends
  • Valuation
  • Each company’s broader role in the digital asset ecosystem

The timing of VanEck’s application is significant, as it arrives amid a surge of activity in the ETF market, driven by mounting speculation that regulatory conditions for cryptocurrencies may improve under President Donald Trump’s administration. In November 2024, Bitwise Asset Management made its own application for a 10 Crypto Index Fund ETF designed to track leading cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).

Additionally, many reputable firms have entered the fray, with WisdomTree, 21Shares, and others submitting applications focused on specific digital assets. Grayscale Investments is seeking to convert its existing Solana Trust into an ETF, while REX Financial has launched the REX Crypto Equity Premium Income ETF, employing a covered-call strategy to generate income from crypto-related stocks. These dynamic developments illustrate the growing interest in digital assets and the anticipation of imminent regulatory clarity.

As the SEC evaluates these applications, the financial industry stands on the brink of a transformative shift that could significantly reshape both institutional and retail access to cryptocurrency investments. The Onchain Economy ETF may pave the way for mainstream acceptance of digital assets, ushering in a new era of investment opportunities.

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