Asset Manager VanEck Files for Cryptocurrency ETF

Jafrin  |  Jan 23, 2021

Asset manager VanEck has filed for a Digital Asset ETF on Jan. 21 for institutional investors looking to gain exposure in shares of companies that generates revenue from cryptocurrency services. Reportedly, the ETF will track the performance of the MVIS Global Digital Assets Equity Index that tracks the performance of the digital asset industry. This includes companies such as cryptocurrency exchanges, payment gateways, and mining operations. It even includes those companies that hold a significant amount of cryptocurrencies such as MicroStrategy.

VanEck's Crypto ETF Look Towards Retail Investors

The Digital Asset ETF will allow investors to gain exposure to companies that offer services catering to the crypto industry. The fund will hold equities in companies that generate at least 50% of revenues from cryptocurrency or blockchain services. The latest ETF registration is looking at retail investors in contrast to only accredited investors.

The filing noted:

“Digital asset companies may include small- and medium-capitalization companies and foreign and emerging market issuers, and the fund may invest in depositary receipts and securities denominated in foreign currencies.”

The latest ETF filing is different from the fund VanEck applied for in mid-December. Last month, the company filed for a bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC)

This was after the firm launched a bitcoin exchange-traded note called the Vaneck Vector Bitcoin ETN on Deutsche Böerse Xetra. The recent filings indicate that VanEck is looking to produce another fund called the Digital Asset ETF.

VanEck Previously Refiled for a Bitcoin ETF

Earlier last month, VanEck refiled for a Bitcoin ETF with the SEC, although it came under trouble from its former partner SolidX, accusing it of plagiarism. According to the complaint, SolidX and VanEck worked together to market shares of the Trust to qualified institutional buyers as a precursor to the SEC approval of trust shares that could be publicly traded in an exchange-traded fund.

Meanwhile, SolidX has been working to bring a Bitcoin ETF to market since 2015. While VanEck was the first company to file for a Bitcoin ETF registered under the Investment Company Act in 2017.

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