VanEck is gearing up to launch its latest exchange-traded fund (ETF), known as the Onchain Economy ETF, under the ticker NODE. Scheduled for debut on May 14, this new addition expands VanEck’s offerings in crypto-related investment products and caters to investors seeking exposure to the digital asset and blockchain economy.

VanEck’s Latest ETF: NODE

Matthew Sigel, VanEck’s head of digital assets, recently announced that the U.S. Securities and Exchange Commission (SEC) has approved the upcoming ETF. Designed to provide equity exposure to companies driving innovation in the blockchain and crypto sectors, NODE offers a unique way for investors to engage with the growing digital asset economy without directly holding cryptocurrencies.

Key Features of the Onchain Economy ETF

NODE focuses on a diversified portfolio, including 30 to 60 publicly traded companies selected from a pool of over 130. These businesses span various industries linked to crypto infrastructure, such as:

  • Asset management firms
  • Data centers
  • Cryptocurrency exchanges
  • Bitcoin mining operations
  • Blockchain hardware manufacturers

Additionally, up to 25% of the ETF’s holdings may be allocated to crypto-linked exchange-traded products. Despite its connection to the blockchain economy, NODE will not invest directly in cryptocurrencies. Instead, it targets what VanEck refers to as “Digital Transformation Companies,” which are firms generating revenue through blockchain, crypto, or distributed ledger technologies.

Innovative Investment Structure

The fund employs a Cayman Islands subsidiary to facilitate indirect exposure to commodity futures, swaps, and other investment vehicles while adhering to U.S. tax regulations. Stablecoins are excluded from the fund, and investments in the subsidiary are capped at 25% of total assets per quarter.

NODE will charge a management fee of 0.69%, making it accessible for investors seeking exposure to blockchain-based equity investments. The ETF also includes foreign securities, mid-cap stocks, and commodities-linked instruments, broadening its investment scope.

VanEck’s Continued Expansion in Crypto ETFs

With the launch of NODE, VanEck is further solidifying its presence in the cryptocurrency ETF market. The firm has previously applied for other crypto-focused ETFs, including those tracking Avalanche and Binance Coin. Moreover, its spot Bitcoin ETF, HODL, has already garnered significant attention, managing over $1.2 billion in assets.

Why NODE Could Appeal to Investors

For investors aged 18 to 50 who are interested in cryptocurrencies, investing, and finance, NODE offers an accessible way to engage with the blockchain economy without requiring direct ownership of digital assets. The ETF provides diversified exposure to companies advancing blockchain infrastructure while maintaining compliance with regulatory guidelines.

“NODE positions itself as a bridge for investors to access the growing digital asset economy without directly holding crypto.”

As the blockchain and crypto sectors continue to evolve, VanEck’s initiatives like NODE highlight the growing demand for investment products tailored to this dynamic ecosystem. Investors can anticipate more crypto-related ETFs from VanEck in the near future, reflecting the firm’s commitment to shaping the future of digital asset investments.

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