VanEck’s NODE ETF: A New Opportunity in Digital Asset Stocks

VanEck’s Onchain Economy ETF (NODE) will launch on May 14th with a 0.69% management fee. It aims to manage 30-60 stocks in the digital asset sector, including crypto exchanges and miners, with a maximum of 25% in crypto ETPs. The ETF will utilize a Cayman Islands subsidiary for compliance with U.S. regulations.

VanEck is set to introduce the Onchain Economy ETF (NODE), which will begin trading on May 14th, carrying a management fee of 0.69%. This ETF has gained SEC approval and aims to actively manage a portfolio consisting of 30-60 stocks related to the digital asset sector. The ETF’s investments may include companies operating as crypto exchanges, miners, data centres, semiconductor manufacturers, and more.

The NODE portfolio will allocate up to 25% of its assets into digital asset exchange-traded products (ETPs). Matthew Sigel, head of VanEck’s digital asset research, highlighted that this fund offers a strategic investment avenue into businesses driving the transition to a digital economy. The ETF will function through a Cayman Islands subsidiary to gain indirect exposure to various products while adhering to U.S. tax laws.

As the market for crypto-related stocks expands, demand from investors for these stocks is rising, especially as potential public offerings are anticipated. A survey conducted at a recent ETF conference indicated a strong interest among financial advisors in crypto equity ETFs, positioning them as a pivotal investment opportunity for 2023.