SEC Reviewing VanEck’s “Onchain Economy” ETF Application

On January 15, 2025, VanEck, an asset management company, filed an application with the U.S. Securities and Exchange Commission (SEC) for the “Onchain Economy” exchange-traded fund (ETF). The application, initially disclosed by Matthew Sigel, VanEck’s head of digital assets research, in a social media post, highlights the company’s intent to invest in the growing digital transformation sector.

ETF Investment Strategy

The proposed ETF aims to allocate at least 80% of its assets to businesses and products within the digital asset ecosystem. These include:

  • Software developers
  • Mining firms
  • Cryptocurrency exchanges
  • Infrastructure providers
  • Payment firms
  • Other crypto-focused companies

Collectively referred to as “Digital Transformation Companies,” these investments will be selected based on a strategic process emphasizing fundamental research, market trends, valuation, and each company’s role in the broader digital asset ecosystem. Although the fund will not directly hold cryptocurrencies, it plans to invest in digital asset products such as commodity futures contracts.

Regulatory Environment and Market Activity

VanEck’s application is part of a broader wave of activity in the ETF market, driven by speculation that the regulatory environment may become more favorable for cryptocurrencies under the current administration.

Other recent developments in the ETF market include:

  • Bitwise Asset Management’s application for its 10 Crypto Index Fund ETF in November 2024, tracking leading cryptocurrencies such as Bitcoin, Ethereum, and Solana
  • WisdomTree’s ETF application in December last year, joining 21Shares, Canary Capital, and Bitwise in submitting applications for ETFs focused on specific digital assets like XRP
  • Grayscale Investments’ petition to convert its existing Solana Trust into an ETF
  • REX Financial’s launch of the REX Crypto Equity Premium Income ETF, employing a covered-call strategy to generate income from crypto-related stocks

Industry Implications

These developments reflect the financial sector’s growing interest in digital assets and the anticipation of regulatory clarity. As the SEC evaluates these applications, the industry is poised for a potential shift that could reshape institutional and retail access to cryptocurrency investments.

For more news on the latest developments in the cryptocurrency space, visit Global Crypto News.

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