Vaneck, an exchange-traded fund provider, has applied for a Digital Asset ETF with the purpose of holding equity in companies that generate revenue through cryptocurrency services. The latest ETF document is different from the fund Vaneck applied for in mid-December, and its purpose is to expose investors to the cryptocurrency industry.
In December last year, Vaneck, an asset manager and ETF provider, applied to the US Securities and Exchange Commission (SEC) for a Bitcoin exchange-traded fund (ETF). Prior to this, the company issued a bitcoin exchange transaction note named “Vaneck Vector Bitcoin ETN” on the Deutsche Böerse Xetra. After taking these two actions, recent documents show that Vaneck hopes to produce another fund called a “digital asset ETF.” The digital asset ETF registration was sent to the SEC on January 21, 2021 (Thursday).
In essence, digital asset ETFs will enable investors to reach companies that provide goods and services in the crypto industry. The fund will hold equity in companies that generate at least 50% of revenue in the cryptocurrency and blockchain economy. The New York-based fund issuer’s ETF registration form stated that the fund “strives to track the price and return performance of the MVIS Global Digital Asset Stock Index as closely as possible before excluding fees and expenses.” The company’s ETF document also details The types of companies that a digital asset ETF may include.
Vaneck’s document states: “Digital asset companies may include small and medium-sized capital companies as well as foreign and emerging market issuers. The fund may invest in depository receipts and securities denominated in foreign currencies.” Contrary to targeting a limited number of qualified investors, This particular ETF registration is for retail investors.
Vaneck’s latest news about the Digital Asset ETF came after the company’s recent issue with its former partner Solidx. Legal news station law360 reported that the blockchain startup Solidx accused Vaneck of breaching the contract. According to the report, after Vaneck severed its relationship with Solidx, the company allegedly used the company’s technology.
The latest Digital Asset ETF registration also mentions that Vaneck’s fund can invest in companies holding digital currency balances, such as Microstrategy. In addition, the fund also introduced that companies with crypto assets can represent exchanges, mining operators, crypto custodians and other companies.
What do you think of the Vaneck Digital Asset ETF recently submitted to the US regulator? Let us know your thoughts on this topic in the comments section below.
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