
Will the SEC authorize VanEck’s foray into the expanding digital asset investment sector?
On January 15, 2025, the asset management firm VanEck submitted an application to the U.S. Securities and Exchange Commission for the “Onchain Economy” exchange-traded fund. Matthew Sigel, VanEck’s head of digital assets research, shared details of the filing in a now-removed social media message, highlighting the company’s ambitious strategy to invest in the swiftly evolving digital transformation space.
The proposed ETF seeks to allocate at least 80% of its assets to companies and products within the digital asset ecosystem. This includes software developers, mining operations, cryptocurrency exchanges, infrastructure providers, payment companies, and other firms concentrated on crypto, collectively labeled as “Digital Transformation Companies.”
VanEck has described a thoughtful selection process for these investments, focusing on fundamental research, market dynamics, valuations, and each firm’s place in the broad digital asset framework. While the fund will not directly possess cryptocurrencies, it intends to invest in digital asset products such as commodity futures contracts.
VanEck’s filing is part of a broader surge of activity in the ETF marketplace, spurred by speculation that the regulatory climate might become more accommodating for cryptocurrencies under President Donald Trump’s administration. Bitwise Asset Management submitted an application in November 2024 for its 10 Crypto Index Fund ETF, which tracks prominent cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
In December of the previous year, WisdomTree submitted applications for ETFs targeting specific digital assets such as XRP (XRP), joining firms like 21Shares, Canary Capital, and Bitwise. Meanwhile, Grayscale Investments requested the SEC to convert its existing Solana Trust into an ETF, and REX Financial introduced the REX Crypto Equity Premium Income ETF, which uses a covered-call strategy to earn income from crypto-related stocks.
These trends highlight the financial sector’s escalating interest in digital assets as well as the anticipation of clearer regulations. As the SEC reviews these proposals, the industry stands at the brink of potential changes that could redefine institutional and retail access to cryptocurrency investments.