VanEck Launches Onchain Economy ETF
On May 14, VanEck announced the launch of an actively managed exchange-traded fund (ETF), known as the VanEck Onchain Economy ETF (ticker: NODE), aimed at tapping into the burgeoning digital economy. This new fund debuted on the Cboe exchange and is designed to offer investors substantial exposure to various companies within the blockchain sphere.
Investment Focus
This range includes not just cryptocurrency mining firms and exchanges, but also providers of blockchain infrastructure and fintech companies focusing on cryptocurrency. In its announcement, VanEck clarified that the NODE ETF will consider investments in any organization that has made definitive plans to enter the blockchain space, as indicated through public communications such as filings and earnings calls.
Management Strategy
While actively managed, the ETF will steer clear of direct investments in cryptocurrencies themselves, although it may include crypto-related financial instruments. VanEck’s head of digital asset research, Matthew Sigel, who also manages the NODE ETF, highlighted the commitment to adapt the investable universe as new entities emerge.
“We aim to maintain sensible exposure to Bitcoin and related businesses that foster the growth of the blockchain economy, while avoiding excessive exposure to high-volatility stocks during buoyant market conditions,” said Sigel.
This proactive approach aims to manage market beta and volatility to ensure capital preservation for future investments.
