VanEck Files SEC Application for Digital Asset Ecosystem ETF

TLDR

• VanEck filed for an “Onchain Economy” ETF with the SEC on January 15, 2025, planning to invest 80% in digital asset ecosystem companies
• The fund will focus on software developers, miners, exchanges, infrastructure providers, and payment firms without directly holding cryptocurrencies
• Several other major firms including Bitwise, WisdomTree, and Grayscale have recently filed similar ETF applications
• The proposed ETF will use fundamental research and market trends to select investments in “Digital Transformation Companies”
• The move comes amid speculation about more favorable crypto regulations under the Trump administration

Asset management giant VanEck has submitted an application to the Securities and Exchange Commission (SEC) for a new exchange-traded fund focused on the digital asset industry. The filing, made on January 15, 2025, proposes the creation of the “Onchain Economy” ETF.

Matthew Sigel, who heads VanEck’s digital assets research division, initially shared news of the filing through social media, though the post was later removed. The ETF represents VanEck’s latest attempt to establish a presence in the expanding digital asset investment landscape.

Deleted a post on an ETF filing.
Details coming soon

— matthew sigel, recovering CFA (@matthew_sigel) January 15, 2025

The proposed fund has outlined clear investment parameters, stating it will direct at least 80% of its assets toward companies operating within the digital asset ecosystem. These investments will target what VanEck terms “Digital Transformation Companies,” encompassing various sectors of the industry.

The ETF plans to invest in software development firms creating blockchain applications and digital asset platforms. Mining companies, which provide the computational power necessary for cryptocurrency networks, will also be included in the investment portfolio.

Cryptocurrency exchanges, which facilitate the buying and selling of digital assets, form another key investment category for the proposed fund. Additionally, the ETF will consider investments in infrastructure providers and payment companies that support the digital asset ecosystem.

While the fund won’t hold cryptocurrencies directly, it intends to gain exposure to the sector through digital asset products, including commodity futures contracts. This approach allows investors to participate in the growth of the digital asset industry while avoiding direct cryptocurrency ownership.

VanEck has detailed its investment selection process, which will rely on fundamental research to identify promising opportunities. The fund managers will analyze market trends and valuations to make investment decisions, while also considering each company’s position and influence within the broader digital asset ecosystem.

The timing of VanEck’s application coincides with increased activity in the ETF market. Industry observers have noted this surge may be linked to expectations of a more crypto-friendly regulatory environment under President Donald Trump’s administration.

Other major financial firms have recently submitted similar applications. Bitwise Asset Management filed for its 10 Crypto Index Fund ETF in November 2024, designed to track leading cryptocurrencies including Bitcoin, Ethereum, and Solana.

WisdomTree joined the trend in December 2024, alongside 21Shares, Canary Capital, and Bitwise, by submitting applications for ETFs focused on specific digital assets like XRP. These companies are positioning themselves to offer investors new ways to gain exposure to individual cryptocurrencies through regulated investment vehicles.

Grayscale Investments has also entered the race, seeking SEC approval to convert its existing Solana Trust into an ETF. This move represents a growing trend of investment firms attempting to transform existing crypto investment products into more accessible ETF formats.

REX Financial has taken a different approach with its REX Crypto Equity Premium Income ETF, implementing a covered-call strategy to generate income from stocks related to cryptocurrency. This demonstrates the variety of investment strategies being developed within the digital asset space.

The wave of ETF applications shows growing institutional interest in digital assets. These investment firms are working to create regulated investment vehicles that could provide easier access to cryptocurrency markets for both retail and institutional investors.

VanEck’s application is currently under review by the SEC, along with numerous other digital asset ETF proposals. The regulator will evaluate each application based on its established criteria for investor protection and market stability.