- VanEck’s $NODE ETF to hold 30–60 blockchain-linked stocks across various sectors
- Fund may invest up to 25% in crypto-related ETPs via Cayman arm
- VanEck sets 0.69% fee for actively managed blockchain equity ETF
The U.S Securities and Exchange Commission (SEC) has granted VanEck approval to launch the Onchain Economy ETF. The fund seeks to invest in blockchain infrastructure businesses and related industrial sectors. The ETF is set to make its market debut on May 14 under the symbol $NODE.
The Onchain Economy ETF will hold 30 to 60 blockchain-related assets. These assets will be derived from multiple industries, such as crypto exchanges, miners, and data centers. Moreover, the fund plans to invest in consumer-oriented firms and asset managers that operate in the digital economy.
VanEck’s NODE ETF Structure
The fund provides investors access to digital transformation businesses that derive revenue from blockchain and crypto-related technologies. Moreover, the ETF aims to invest up to 25% of its assets in digital asset exchange-traded products (ETPs). The selection will comprise digital infrastructure companies from U.S and global markets.
The ETF will not directly hold cryptocurrencies. The fund will invest in corporations that utilize or profit from blockchain systems. These companies operate in different industries, such as hardware manufacturing, energy infrastructure, and traditional finance systems.
VanEck plans to actively manage the Onchain Economy ETF operations. Under this management approach, the fund uses market fluctuations and opportunities to adjust its asset distribution. Additionally, the ETF operates an offshore subsidiary in the Cayman Islands to fulfill the U.S. tax requirements.
The fund will charge a management fee of 0.69%. Although the ETF concentrates on blockchain infrastructure, its investment in subsidiaries will not exceed 25% of its total assets. This approach maximizes financial returns and adheres to relevant laws and taxation rules.
Increased Demand For Crypto-Based Investment Products
VanEck’s NODE ETF launch reflects the increased investor interest in blockchain and crypto-related assets. The company’s digital asset portfolio includes ETFs that track tokens such as Bitcoin and Solana. The Onchain Economy ETF provides investors with exposure to blockchain-based equities rather than direct digital asset investments.
The increased number of public crypto-related stocks fuels the rise in demand for blockchain-related ETFs. The increased interest in crypto equity exchange-traded funds (ETFs) among financial advisors confirms the market acceptance for these products. Experts predict that this trend will continue because blockchain technology plays a central role in the global digital economy.