VanEck Launches an ETF Providing Exposure to Companies Driving Digital Assets Growth
Instead of investing directly into crypto or indirectly via derivatives, DAPP provides exposure to miners, exchanges, miners, big HODLers, and infrastructure companies.
After the Bitcoin exchange-traded fund, VanEck has now announced the launch of a pure-play ETF that offers exposure to key companies in the crypto sector, including exchanges, miners, big HODLers, payment gateways, banking, and infrastructure companies.
It's important to note, that this Fund will not be investing in cryptocurrencies directly or indirectly through derivatives.
Through DAPP, VanEck aims to solve the issue of investors having to choose among funds that are often companies only tangentially involved with digital assets. Ed Lopez, Managing Director, Head of ETF Product for VanEck, said,
“The digitalization of the global economy has been picking up steam for the past several years, and as digital assets mature, this has driven the growth of several innovative companies—not only miners of digital assets, but also digital asset exchanges, payments, services, storage, e-commerce and much more.”
According to the official announcement, DAPP seeks to track the price and yield performance of the MVIS Global Digital Assets Equity Index, tracking the overall performance of companies involved in digital assets.
To be part of the index, a company must generate at least 50% of its own revenues from digital assets projects; or, when developed, generate their revenues from digital assets or projects or invested in direct digital asset holdings or digital asset projects.
“Digital transformation companies cover a broad swath of the investment landscape related to digital assets, well beyond what’s taking place with cryptocurrencies like bitcoin. It’s also important to note that digital transformation represents a long-term structural growth story, supported by significant ongoing investment and adoption on a global scale by both retail and institutional investment participants.”