cryptojournalist
Asset management giant VanEck has submitted an application to the U.S. Securities and Exchange Commission (SEC) for its “Onchain Economy” exchange-traded fund (ETF). This fund is designed to invest heavily in companies and instruments shaping the digital asset ecosystem, signaling growing interest in crypto-based financial products.
What the Onchain Economy ETF Targets
VanEck plans to allocate at least 80% of the fund’s assets to businesses it dubs “Digital Transformation Companies.” These include:
Software Developers: Firms creating blockchain-based applications.
Crypto Miners: Companies securing blockchain networks and earning digital assets.
Exchanges and Payment Firms: Platforms facilitating crypto trading and transactions.
Infrastructure Providers: Businesses supporting the underlying technology of cryptocurrencies.
The ETF will also invest in financial instruments like commodity futures tied to digital assets but will not directly hold cryptocurrencies. Companies selected for the fund will be evaluated based on their market positioning, growth potential, and valuation.
Crypto ETF Applications Surge
VanEck’s filing is one of many recent efforts by financial firms aiming to capitalize on a potentially favorable regulatory environment under new SEC leadership.
Bitwise: Proposed its “10 Crypto Index Fund ETF,” covering assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Cardano (ADA).
WisdomTree: Filed for an XRP (Ripple)-based ETF in December 2024.
Grayscale: Applied to convert its Solana Trust into an ETF to make Solana more accessible to investors.
REX Financial: Launched the REX Crypto Equity Premium Income ETF, generating income through covered-call strategies on crypto stocks.
A Changing Regulatory Landscape
VanEck’s move comes as the crypto industry anticipates changes at the SEC following President-elect Donald Trump’s reelection. The hope is that the agency will adopt a more crypto-friendly stance, making it easier for ETFs and other digital asset products to gain approval.
This wave of applications reflects the growing confidence among financial institutions that the crypto market is poised for mainstream adoption, provided the regulatory framework evolves to accommodate innovation.
