VanEck introduces the NODE ETF, offering investors targeted exposure to blockchain firms and crypto-linked equities in a rapidly evolving digital market.
VanEck has introduced a new exchange-traded fund to give investors access to the expanding digital asset economy without requiring them to hold cryptocurrency directly.
The company announced in a press release on May 14 that the VanEck Onchain Economy ETF, which is traded under the ticker NODE, will provide investors with exposure to “digital asset instruments and digital transformation companies.”
The fund is actively managed and concentrates on public companies involved in the blockchain environment, such as energy providers, data centers, crypto processors, exchanges, and fintech firms that utilize crypto technology.
The portfolio will be adjusted by market trends and the connection of each firm to Bitcoin, with a selection of 30 to 60 companies from a broader cohort of over 130. NODE will not directly possess cryptocurrencies; however, it can invest up to 25% of its assets in crypto-linked exchange-traded products, such as Bitcoin ETFs.
The fund will be able to comply with U.S. tax laws while indirectly gaining exposure to cryptocurrency-related products such as swaps and futures by making these investments through a Cayman Islands subsidiary. NODE will not invest in stablecoins and will limit subsidiary exposure to 25% of its assets quarterly.
VanEck’s Head of Digital Assets Research, Matthew Sigel, stated that NODE aims to offer “diversification and liquidity” as a lower-volatility alternative to pure-play crypto strategies. “The portfolio can be optimized throughout market cycles by categorizing assets based on their bitcoin sensitivity,” he continued.
NODE is a valuable addition to VanEck’s portfolio of crypto-related products, including the passively managed Digital Transformation ETF, with a management fee of 0.69%. The launch is timed to coincide with the increasing institutional interest in blockchain infrastructure and the growing availability of products from traditional asset managers suitable for the evolving on-chain economy.
VanEck has also submitted applications for exchange-traded funds (ETFs) linked to specific digital assets, such as Binance Coin and Avalanche. This suggests the company is actively expanding its presence in the cryptocurrency investment sector.
