Will the SEC allow VanEck to enter the growing digital asset investment space?
On January 15, 2025, the asset management company VanEck filed an application with the US Securities and Exchange Commission for the “Onchain Economy” exchange-traded fund. Matthew Sigel, VanEck's head of digital asset research, revealed the filing in a now-deleted social media post, revealing the firm's ambitious plans to invest in the digital transformation sector that ' grow quickly.
The Recommended ETF aims to allocate at least 80% of its assets to businesses and products within the digital asset ecosystem. These include software developers, mining companies, cryptocurrency exchanges, infrastructure providers, payment companies, and other crypto-focused companies known as “Digital Transformation Companies.”
VanEck outlined a strategic selection process for these investments, emphasizing fundamental research, market trends, valuation, and each company's role in the broader digital asset ecosystem. Although the fund will not hold cryptocurrencies directly, it plans to invest in digital asset products such as commodity futures contracts.
VanEck's application is part of a broader wave of activity in the ETF market, driven by speculation that the regulatory environment could be more favorable to cryptocurrencies under the administration of President Donald Trump. Bitwise Asset Management he applied in November 2024 for the 10 Crypto Index Fund ETF, which tracks major digital currencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Last December, Tree of Wisdom along with 21Shares, Canary Capital, and Bitwise in submitting applications for ETFs focused on specific digital assets such as XRP (XRP). Grayscale Investments also petitioned the SEC to convert the existing Solana Trust into an ETF, while REX Financial launched the REX Crypto Equity Premium Income ETF, which uses a covered call strategy to -Income generated from crypto-related stocks.
These developments reflect the growing interest of the financial sector in digital assets and the expectation of regulatory clarity. As the SEC evaluates these applications, the industry is poised for a move that could reshape institutional and retail access to cryptocurrency investments.
