VanEck Seeks SEC Approval for Innovative Onchain Economy ETF

VanEck Files for New "Onchain Economy" ETF: A Strategic Move in the Crypto Space

In a significant development for the cryptocurrency sector, asset manager VanEck has submitted an application to the U.S. Securities and Exchange Commission (SEC) for its innovative "Onchain Economy" exchange-traded fund (ETF). This announcement was initially shared via a now-deleted post by VanEck’s head of digital assets research, Matthew Sigel.

What is the Onchain Economy ETF?

The proposed ETF is designed to invest in a diverse range of crypto-related firms, which are categorized as "Digital Transformation Companies". This includes:

Software developers
Mining companies
Crypto exchanges
Infrastructure builders
Payment firms

Selections for investment are made based on detailed fundamental analysis, prevailing market trends, strategic positioning within the digital asset ecosystem, and comprehensive valuation assessments.

Investment Strategy and Focus

One noteworthy aspect of the Onchain Economy ETF is that, while it will invest in digital asset instruments such as commodity futures contracts, it will not directly hold cryptocurrencies. This strategy may appeal to conservative investors who are anxious about the volatility associated with direct cryptocurrency ownership.

Crypto ETF Applications Surge Amid Regulatory Changes

This filing is indicative of a broader pattern within the financial sector, where numerous firms are racing to file for cryptocurrency ETFs in anticipation of favorable regulatory shifts under the new SEC leadership. Following the anticipated reelection of President-elect Donald Trump, asset managers have been proactive in submitting or updating their ETF applications, hoping for a more supportive regulatory environment.

Notable Applications from Major Firms

Among the wave of ETF filings is:

Bitwise: This digital asset manager filed for the 10 Crypto Index Fund ETF in November 2024, which aims to include prominent cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).
WisdomTree: In December 2024, this ETF provider filed for an XRP ETF, showcasing their commitment to expanding their crypto product offerings.
Grayscale: Another prominent player, Grayscale, has also sought to convert its existing Grayscale Solana Trust into an ETF.
REX Financial: Launched the REX Crypto Equity Premium Income ETF in December, which utilizes a covered-call strategy to leverage income from crypto stocks.
Bitwise: Recently proposed the Bitwise Bitcoin Standard Corporations ETF, focusing on firms with substantial Bitcoin holdings.

These extensive ETF filings highlight the increasing enthusiasm surrounding cryptocurrency investments as firms strategically position themselves for potential regulatory progress.

Conclusion: A Shift in the Cryptocurrency Landscape

With firms like VanEck leading the way in offering comprehensive investment options via ETFs, investors can expect a more structured and regulated approach to cryptocurrency exposure. The anticipation of changes in the regulatory landscape could significantly impact how mainstream investors view digital assets in the coming years.

For more information on the growing landscape of crypto ETFs and investment strategies, stay tuned as we continue to monitor developments in this fast-evolving sector.