VanEck’s NODE ETF: A New Approach to Cryptocurrency Investment

A new cryptocurrency equity ETF called NODE is set to launch on May 14 with a strategy focused on over 130 companies, differing from existing funds by avoiding volatile mining investments. Financial advisers favour equity ETFs for crypto exposure in 2025, driven by a preference for stable companies. The ETF will target energy firms tied to Bitcoin mining and innovative Web2 companies pursuing crypto adoption. It anticipates significant IPO activity in the crypto space.

Financial advisers predict that equity ETFs will be their primary means of gaining crypto exposure by 2025, as revealed by a January Bitwise/VettaFi survey. At the Digital Asset Summit, 10T Holdings founder Dan Tapiero underscored the lasting appeal of investing in traditional companies that showcase solid cash flows and governance structures.

VanEck’s Onchain Economy ETF (NODE), set to launch on May 14, differentiates itself from ETFs like the Amplify Transformational Data Sharing ETF (BLOK) and VanEck’s own Digital Transformation ETF (DAPP). While DAPP predominantly invests in Bitcoin miners and a limited number of assets, NODE aims to encompass a broader range of over 130 companies, thus mitigating risks associated with the unpredictable mining sector.

Matthew Sigel, Head of Digital Assets Research at VanEck, notes that while the investment focus on Bitcoin miners has been profitable for some, many have failed to yield consistent returns. NODE seeks stability by investing in “downstream and midstream energy companies” related to Bitcoin mining, presenting a more diversified risk profile.

Furthermore, the ETF will target innovative Web2 firms proactively engaging with stablecoins and cryptocurrency adoption. Sigel emphasised that this strategy aims not only to leverage direct revenue opportunities but also to enhance traditional companies’ cost structures through crypto infrastructure.

The influx of cryptocurrency firms expected to go public, such as eToro and Circle, adds another layer of potential for NODE’s portfolio. Sigel highlighted the presence of over $10 billion in forthcoming IPOs, providing a promising landscape for equity investors in the next year.

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