In recent news, VanEck has filed with the Securities and Exchange Commission (SEC) to create an ETF (Exchange Traded Fund) focusing on digital asset mining firms.
The fund shall reportedly invest a minimum of 80% of its accumulated assets in securities of digital asset mining enterprises which produce or have the potential to provide at least half of their income from mining or similar technologies.
Small and medium-capitalization enterprises, as well as international and developing market issuers, may be included in the ETF's holdings. Additionally, it might invest in various depositary receipts as well as foreign currency-denominated securities.
It is worth mentioning however that the ETF will not make direct investments in digital assets and ICOs (Initial Coin Offerings). Moreover, the filing did not include information about the potential ETF's listing date, ticker, or associated costs.
What to expect
Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF (RIGZ), which has risen 45% ever since commencement in July, and Bitwise Crypto Industry Innovators ETF (BITQ), which has risen 26% since its commencement earlier this year, are two other ETFs that are listed in the United States and have significant exposure to cryptocurrency miners.
Moreover, the SEC denied VanEck's proposal to launch a Bitcoin Spot ETF last month. The filing was made public in March. However, it took many months for the commission to dismiss it due to investor protection concerns.
The SEC has a history of delaying Bitcoin ETFs until October when the ProShares Bitcoin strategy ETF became available. The ProShares ETF was based on futures contracts. Furthermore, because of the CME safeguards, Gary Gensler has since indicated more receptivity to it. Nevertheless, the commission has since authorized a number of similar ETFs. One of them came from VanEck in November, although it received significantly less attention on launch day than the ProShares ETF.
VanEck's ETF plan thus seems to offer a creative solution for the SEC's warning about spot crypto ETFs. To some extent, mining businesses' profits are dependent on Bitcoin's price, offering an indirect type of asset exposure.