VanEck has launched a new ETF that gives its investors exposure to crypto exchanges, mining companies, payments companies and the broader crypto industry in general. In a press release, the company announced its new Digital Transformation ETF (DAPP) on the Nasdaq exchange.
In the press release the company said that it believed in the future of digital asset as both a utility and viable asset class.
“We as a firm have long believed in the utility and viability of digital assets as an asset class, and we are thrilled to be providing investors with exposure to companies powering the digital transformation.”
Ed Lopez, the managing director and Head of ETF Product for VanEck, commented on the growing maturity of digital assets and the digitalization of the global economy.
“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,” said Lopez.
“To this point, however, investors have had to choose among funds that too often included companies only tangentially involved with digital assets. That is something we’ve sought to solve with the launch of DAPP, a fund we’re very excited to be bringing to market,” Lopez added.
VanEck’s press release noted that its new ETF (DAPP) aims to “track, as closely as possible, the price and yield performance of the MVIS Global Digital Assets Equity Index (“The Index”), a rules-based modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of companies involved in digital assets.”
Companies that are eligible to fit in this index must generate 50% of its revenues from digital asset related projects, have projects that, when developed, have the potential to generate 50% of its revenues from digital asset related projects or have at least 50% of its assets directly invested in digital assets or digital asset projects.
Lopez further commented on the broad landscape of the digital asset space outside of Bitcoin.
“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,” said Lopez.
The new ETF’s top holdings include Galaxy Digital Holdings, Sqaure Inc. (SQ), Marathon Digital Holdings (MARA), Riot Blockchain (RIOT), MicroStrategy (MSTR), Nvidia (NVDA), PayPal (PYPL) and more.