VanEck has submitted a proposal to the US Securities and Exchange Commission (SEC) for a new Exchange-Traded Fund (ETF) called the “On-chain Economy.” This ETF will focus on companies and financial instruments related to the crypto industry but will not directly invest in cryptocurrencies.
The ETF aims to allocate at least 80% of its net assets to “Digital Transformation Companies” and “Digital Asset Instruments.” Digital Transformation Companies include crypto exchanges, payment gateways, and mining operations, while Digital Asset Instruments consist of financial products like commodity futures and options linked to crypto. VanEck has made it clear that the fund will not hold cryptocurrencies or commodities directly.
To comply with US tax regulations, the fund will invest through a subsidiary in the Cayman Islands. This subsidiary’s investments will be limited to 25% of the fund’s total assets at the end of each fiscal quarter, balancing crypto exposure with regulatory requirements.
VanEck has been proactive in the crypto ETF space, previously filing for Solana ETFs and other crypto-related products. However, it recently closed its Ethereum futures ETF due to underperformance compared to Bitcoin ETFs.
The On-chain Economy ETF will target companies that generate significant revenue from digital asset projects or hold substantial digital assets. It will employ market trends and fundamental analysis for investment selection, similar to Bitwise’s “Bitcoin Standard Corporations ETF.”
Matthew Sigel, VanEck’s head of digital assets research, initially mentioned the ETF in a deleted post on X (formerly Twitter) but later confirmed details would follow. This filing comes as the SEC reviews other crypto ETF proposals, reflecting the increasing interest in indirect exposure to digital assets as the crypto landscape evolves.
