SEC Approves VanEck's Onchain Economy ETF, NODE, for May 14th Launch

The U.S. Securities and Exchange Commission (SEC) has approved the launch of the VanEck Onchain Economy ETF, an exchange-traded fund (ETF) designed to provide investors with exposure to the digital asset sector. The ETF, which will trade under the ticker symbol NODE, is set to begin trading on May 14th. The fund will be actively managed and aims to achieve long-term capital appreciation by investing in companies and instruments closely tied to the digital asset economy.

The Onchain Economy ETF will strategically hold between 30 and 60 names selected from a broader universe of over 130 stocks. This universe includes various segments crucial to the digital asset ecosystem, such as cryptocurrency exchanges, Bitcoin miners, data centers supporting blockchain infrastructure, energy infrastructure providers, semiconductor and hardware companies, and traditional financial institutions involved in digital asset rails. The fund may also allocate up to 25% of its holdings to cryptocurrency exchange-traded products (ETPs), providing indirect exposure to digital assets themselves. The management fee for the ETF is set at 69 basis points.

Matthew Sigel, VanEck's head of digital assets research, emphasized the broader economic shift driving this new ETF. "The global economy is shifting to a digital foundation. NODE offers active equity exposure to the real businesses building that future." This strategy aims to capture the growth potential of the entire digital asset ecosystem, rather than being solely reliant on the price fluctuations of individual cryptocurrencies. This approach could appeal to investors seeking a more diversified and potentially less volatile way to participate in the long-term growth of the digital asset market.

The launch of the Onchain Economy ETF represents VanEck's latest move to offer investors exposure to the digital asset space. The firm has been an active player in this area, notably launching its spot Bitcoin ETF (ticker: HODL), which has already amassed significant assets under management since its debut in January 2024. VanEck was also among the first to file for a spot Solana ETF and recently offered the first prospectus for a BNB fund, demonstrating its commitment to providing diverse investment opportunities within the digital asset landscape.

By investing in the infrastructure and related industries supporting the digital asset economy, VanEck aims to provide investors with a diversified and potentially less volatile way to participate in the long-term growth of the digital asset market. This strategy could appeal to investors seeking a more stable and diversified investment in the digital asset sector.