VanEck Files for Digital Asset ETF; Giving Investors Exposure to Crypto Companies
The global investment management firm VanEck has officially filed an application to form a ‘Digital Asset ETF' through the US' Securities and Exchange Commission (SEC). The application indicates that VanEck is looking to provide its institutional investors with easy means of investing in shares of companies that derive some or most of their value from cryptocurrencies.
According to the filed SEC application, VanEck's Digital Asset ETF will track the ongoing MVIS Global Digital Assets Equity Index, which tracks digital assets' performance across the entire industry. These assets would also include companies that leverage blockchain technology to function as payment gateways, digital asset exchanges, and more.
To be considered eligible, companies must obtain 50% of their revenue from cryptocurrency-related projects. Companies that could qualify in the future would include Coinbase and Bakkt; both of these are companies that have taken steps to go public.
Growing Pains – VanEck's Bitcoin ETF
The Digital Asset ETF represents the latest by VanEck to the SEC, having filed for its Bitcoin ETF back in December. After it was filed, VanEck faced severe backlash from its former trading partner, SolidX, which claimed that VanEck was guilty of plagiarism. SolidX claimed that the Bitcoin ETF was the product of collaboration between the two before the partnership broke down in bad faith.
“Mere weeks after its bad faith termination of the agreements, VanEck began announcing products that directly compete … products it could not have begun to issue without working against SolidX's interests while still its business partner.”