DailySun
Will the SEC give the green light to VanEck’s foray into the expanding digital asset investment market?
On January 15, 2025, the asset management firm VanEck submitted a request to the U.S. Securities and Exchange Commission for the “Onchain Economy” exchange-traded fund. Matthew Sigel, the head of digital assets research at VanEck, shared details of the filing in a now-removed social media update, highlighting the company’s ambitious intentions to participate in the thriving digital transformation landscape.
The proposed ETF intends to invest at least 80% of its assets in enterprises and offerings within the digital asset ecosystem. This encompasses software developers, mining operations, cryptocurrency exchanges, infrastructure providers, payment companies, and other crypto-centric entities collectively termed as “Digital Transformation Companies.”
VanEck detailed a strategic selection method for these investments, focusing on fundamental analysis, market dynamics, valuation, and each firm’s position within the larger digital asset framework. Although the fund will not engage in direct cryptocurrency holdings, it aims to invest in digital asset products like commodity futures contracts.
VanEck’s filing is part of a larger surge in activity within the ETF sector, spurred by speculation that the regulatory landscape may become more conducive to cryptocurrencies under President Donald Trump’s administration. Bitwise Asset Management submitted its application in November 2024 for the 10 Crypto Index Fund ETF, which monitors leading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
In December of last year, WisdomTree joined 21Shares, Canary Capital, and Bitwise in filing requests for ETFs centered on specific digital assets like XRP (XRP). Additionally, Grayscale Investments sought SEC approval to transform its existing Solana Trust into an ETF, while REX Financial introduced the REX Crypto Equity Premium Income ETF, utilizing a covered-call strategy to generate revenue from crypto-related equities.
These advancements signify the growing interest from the financial sector in digital assets along with expectations of clearer regulations. As the SEC reviews these applications, the industry stands on the brink of a potential evolution that could redefine access to cryptocurrency investments for both institutions and retail investors.
