VanEck is an investment company with assets of almost $82 billion that has applied to the United States Securities and Exchange Commission for the launch a new exchange-traded funds (ETF). The fund will invest in mining companies and Bitcoin (BTC).
According to the SEC document, Thursday’s filings state that the fund will concentrate on securities in an Index that tracks the performance of digital asset mining companies and gold mining firms. It will not invest directly in cryptocurrency or through derivatives. The document did not mention a ticker or cost ratio.
VanEck ETF Trust files with the SEC-VanEck Digital Assets Mining ETF https://t.co/pSaogEzRVW
March 8, 2022
Concerns over U.S. regulation continue to linger in the background of VanEck’s announcement of VanEck’s proposed fund. Joe Biden, the U.S. President, is expected to sign an executive Order later in this week, which will outline the country’s crypto strategy.
This order will direct federal agencies, including the SEC, to submit reports about what they have done regarding digital assets in the coming year. This administration has been criticized for not being clear enough about cryptocurrency regulation.
The SEC rejected a VanEck ETF which would have purchased BTC directly in November. Despite the industry advocating one for years, the regulator still hasn’t approved it. The regulatory work for the crypto space is underway, so regulators could delay the approval of ETFs until a stronger regulatory framework is in place.
Related: Charles Schwab files for Crypto Economy ETF because of customer demand
VanEck had earlier this year announced the creation its first cryptocurrency fund. The Deutsche Boerse Xetra, SIX Swiss and Polygon exchanges list the fund as an exchange-traded not (ETN), Polkadot, DOT, Solana, SOL, Tron (TRX), Avalanche, Avalanche, Polygon (MATIC).
VanEck’s Digital transformation ETF (DAPP) was introduced in April 2017. It invests in companies that offer cryptocurrency exchanges, miners, and other crypto-related stocks. The company also launched the Bitcoin Strategy Fund, which invests cash-settled Bitcoin futures.