The SEC has given the go-ahead for a new exchange-traded fund (ETF) focused on the crypto sector, developed by investment firm VanEck. This ETF, called the “Onchain Economy ETF,” will be a game-changer for investors looking for exposure to the digital asset space.
What’s in the ETF?
Managed by VanEck’s head of digital assets research, Matthew Sigel, the ETF will hold between 30 and 60 stocks connected to the crypto industry. This includes a diverse range of companies, such as:
- Cryptocurrency miners
- Crypto exchanges
- Data center operators
- Energy infrastructure providers
- Hardware manufacturers
- Traditional finance companies involved in crypto
- Gaming companies
- Asset management firms
The ETF will also invest up to 25% of its assets in other crypto-focused ETFs.
Launch and Investment Strategy
The ETF, trading under the ticker symbol NODE, is slated to launch by May 14th. Sigel highlights the growing importance of digital assets in the global economy, stating that NODE offers investors a way to participate in this burgeoning sector.
Following the Trend
This approval follows the SEC’s earlier green light for Bitcoin spot market ETFs in January 2024 and Ethereum ETFs last July. Other firms, like Franklin Templeton and Hashdex, have also launched similar ETFs this year. VanEck itself already offers ETFs for ETH and BTC and has pending applications for Solana (SOL) and Avalanche (AVAX) ETFs.
Disclaimer: Investing in cryptocurrencies and related assets carries significant risk. This information is not financial advice. Always conduct thorough research and consider your own risk tolerance before investing./p>