Vaneck has received regulatory effectiveness against the new Onchain Economy ETF, a proactively managed fund designed to provide investors with a broad exposure to companies with an ecosystem of digital assets.
Regulation effectiveness means that the SEC can approve the registration of the fund and begin offering stocks to the public.
Matthew Sigel, head of digital asset research at Vanek and active portfolio manager for Node, shared the development Posted on April 16th.
According to submissions, the company plans to release the ETF on May 14th. Under the ticker node.
node
A proactively managed fund may seek exposure to stocks related to the crypto industry and allocate up to 25% of its assets to cryptocurrency exchange products (ETPs).
Sigel said the node would choose between 30 and 60 names from over 130 companies operating in the chain and digital infrastructure sector.
These include public exchanges, miners, data center operators, payment companies, hardware manufacturers, asset managers, and companies that hold crypto on their balance sheets. ETFs charge a 0.69% management fee.
The fund's aggressive approach is aimed at tracking the transition to a blockchain-enabled model of traditional financial and industrial operations.
In contrast to Spot Crypto ETFs, nodes do not hold direct cryptographic positions and instead target public companies strategically exposed to digital assets or blockchain infrastructure.
Vaneck initially filed an Onchain Economy ETF with the Securities and Exchange Commission January 15th. The ETF is based on the structure of existing Crypto Equity products, while adopting a broader investment scope and revised branding strategy.
Filing and Investment Scope
According to the filing, the fund intends to allocate at least 80% of its net worth to securities defined as “digital transformation company” or digital asset equipment.
The filing describes a digital transformation company as a company that generates revenue from activities that include crypto, blockchain, or other distributed ledger technologies. These may include small and medium-sized issuers, foreign companies, and emerging market stocks.
ETFs also allow investments in securities derived from foreign currency, US and global deposit receipts, and select merchandise related products.
The ETF includes offshore subsidiaries living in the Cayman Islands. This structure allows for indirect exposure to digital asset equipment such as commodity futures, swaps and pooled investment instruments, while complying with US federal tax regulations that limit direct exposure by registered investment companies.
Vaneck specified that investments in the subsidiary would not exceed 25% of the fund's total assets at the end of each quarter. The fund will remove stubcoin from the investment universe and prioritize companies that show significant participation in a blockchain-based business model.
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