VanEck launches Digital Assets ETF
Asset manager VanEck has listed the VanEck Vectors Digital Assets Equity UCITS ETF on the London Stock Exchange.
With the new product, investors can invest specifically in companies that are involved in driving forward the digital transformation of the economy with digital assets.
Digital assets are blockchain-based applications; on the one hand cryptocurrencies such as Bitcoin or Ethereum, and on the other hand non-fungible tokens (NFTs) or decentralised programmes.
“The digital transformation is changing large parts of our economy,” says Martijn Rozemuller, CEO Europe at VanEck. “This is not just short-term hype, but rather is a long-term, structural development. Blockchain applications are finding more areas of use that now extend way beyond cryptocurrencies. Consequently, investors are increasingly looking to digital assets for investment opportunities.”
The VanEck Vectors Digital Assets Equity UCITS ETF gives investors diversified access to companies operating in the crypto and blockchain industries. These include, for example, digital asset trading platform providers, hardware manufacturers, crypto-mining companies and payment providers. Similarly, the ETF takes into consideration companies that enable the trading and custody of crypto assets, companies that provide services on blockchain patents, banks and asset managers that connect the traditional financial world and the digital asset economy.
“Digital assets have gained tremendous momentum around the world in recent years,” says Gabor Gurbacs, Director Digital Assets Strategy at VanEck. “In addition to cryptocurrencies, which have seen strong growth, companies that provide the necessary infrastructure and enable digital asset trading and background processes in the first place are also benefiting. For investors who cannot or do not want to invest directly in individual cryptocurrencies, the ETF provides a good opportunity to invest in digital asset companies in both a targeted and diversified manner and to benefit from the positive development of the sector.”
The VanEck Vectors Digital Assets Equity UCITS ETF tracks the MVIS Global Digital Assets Equity Index, which includes companies in the digital assets sector. Only companies that already generate at least 50 percent of their revenue from digital asset projects or have the potential to do so are included in the index. However, the ETF does not invest in cryptocurrencies or digital assets per se, neither directly nor indirectly through derivatives.