VanEck, a prominent asset management firm, has received regulatory approval for its latest offering, the Onchain Economy ETF (NODE), set to launch on May 14. This actively managed ETF provides investors with direct equity exposure to companies involved in digital asset infrastructure, without the need to hold cryptocurrencies themselves.
The approval was confirmed by Matthew Sigel, Head of Digital Assets Research at VanEck, in a post on April 16. The initial application was filed with the U.S. Securities and Exchange Commission (SEC) on January 15.
According to the regulatory filing, the NODE ETF will consist of 30 to 60 equity holdings selected from a pool of over 130 publicly traded companies with strong ties to the digital asset ecosystem. The target portfolio includes a diverse range of sectors such as cryptocurrency exchanges, Bitcoin mining companies, data centers, asset managers, and firms with crypto holdings.
The ETF will have a management fee of 0.69%, with at least 80% of its net assets allocated to “Digital Transformation Companies” or digital asset instruments. These companies are selected based on a rigorous framework that combines fundamental analysis, market trend assessment, strategic positioning, and relative valuation metrics.
While the fund seeks exposure to the largest digital assets by market capitalization, stablecoins are deliberately excluded from the digital asset strategy. However, NODE allows for diversified exposure through foreign securities, American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), and other commodity-linked instruments.
To comply with U.S. tax regulations, NODE will incorporate an offshore subsidiary in the Cayman Islands, allowing indirect exposure to digital asset instruments like commodity futures and swaps. This structure ensures compliance with federal rules limiting direct commodity or crypto exposure for registered investment companies.
The launch of the NODE ETF is part of VanEck’s broader strategy to expand its ETF offerings in the crypto sector. The firm has filed applications for a BNB spot ETF and an Avalanche (AVAX) ETF, signaling its commitment to the digital asset space. Despite regulatory delays, VanEck remains optimistic about the future of cryptocurrencies, with forecasts predicting significant growth for assets like Bitcoin and Solana.
In conclusion, VanEck’s NODE ETF represents a unique opportunity for investors to gain exposure to the digital asset ecosystem through a diversified portfolio of companies. With a focus on regulatory compliance and long-term growth potential, the ETF offers a strategic approach to investing in the evolving crypto market.