VanEck Submits SEC Application for Onchain Economy ETF

VanEck has submitted an application to the SEC for its Onchain Economy ETF, which seeks diversified exposure to digital transformation companies.

The US Securities and Exchange Commission (SEC) is dealing with a surge in cryptocurrency-related exchange-traded fund (ETF) applications, indicating a growing interest in incorporating digital assets into traditional investment products. Recent registrations, including VanEck's proposed "Onchain Economy ETF" and Bitwise's 10 Crypto Index Fund ETF, are part of an effort to provide diverse exposure to the growing cryptocurrency ecosystem. While these funds aim to make blockchain-driven innovations more accessible, authorities remain cautious, lengthening review times as they assess possible market risks and investor protections.

VanEck Submits Application for Onchain Economy ETF, Highlighting Growth in Crypto Investment Products

Asset management firm VanEck has applied with the US Securities and Exchange Commission (SEC) to launch the "Onchain Economy" exchange-traded fund, a significant move for the cryptocurrency industry. This initiative, reported in a now-deleted social media message by Matthew Sigel, VanEck's head of digital assets research, marks a significant step toward integrating blockchain-powered enterprises into mainstream investing opportunities.

According to the SEC filing, the Onchain Economy ETF will invest in companies crucial to the cryptocurrency and blockchain ecosystems. These include software developers, mining companies, cryptocurrency exchanges, infrastructure builders, payment providers, and other "Digital Transformation Companies."

VanEck elaborated on its selection methodology, highlighting the significance of fundamental analysis, market trends, strategic positioning within the digital asset ecosystem, and valuation measures. While the fund intends to invest in digital asset-related instruments such as commodity futures contracts, it will not directly own cryptocurrencies.

This method is consistent with regulatory expectations and allows investors to obtain exposure to the digital asset economy through more traditional financial instruments. VanEck solidifies its position as a pioneer in crypto-oriented financial solutions by bridging the gap between institutional investment and blockchain technology.

VanEck's proposal comes amid growing expectations of a friendlier regulatory environment following US President Donald Trump's reelection. Industry observers anticipate that this political shift will lead to more use of cryptocurrency ETFs and other digital asset-focused investment products. Under projected new leadership, the SEC may take a more accommodating posture, allowing long-awaited permits for various cryptocurrency-related funds.

A Wave of ETF Applications

VanEck's move is part of a larger pattern in which financial institutions hurry to launch crypto ETFs in anticipation of regulatory clarity.

Bitwise, a digital asset manager, applied in November 2024 for the 10 Crypto Index Fund ETF, which is intended to track a diverse basket of cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP, Avalanche (AVAX), Chainlink (LINK), Cardano (ADA), Bitcoin Cash (BCH), Uniswap (UNI), and Polkadot (DOT).

WisdomTree entered the contest in December 2024 with a proposal for an XRP-focused ETF, joining established players such as 21Shares, Canary Capital and Bitwise. Meanwhile, Grayscale Investments, recognized for its digital asset trusts, petitioned the SEC to convert its existing Grayscale Solana Trust into an ETF, indicating growing confidence in blockchain networks such as Solana.

The same month, REX Financial launched the REX Crypto Equity Premium Income ETF, which uses a covered-call strategy to target cryptocurrency equities and create consistent income for investors.

Bitwise recently submitted a request to market the Bitwise Bitcoin Standard Corporations ETF, which seeks to invest in companies with significant Bitcoin holdings, including MicroStrategy and Tesla.

VanEck's application and the broader wave of ETF registrations highlight the growing widespread recognition of Bitcoin as a viable asset class. These products are intended to provide retail and institutional investors with a more stable and regulated entry point into the rapidly expanding digital asset market.

The Onchain Economy ETF provides investors a strategic chance to participate in the blockchain industry's growth without directly handling cryptocurrency. It also demonstrates a rising belief in blockchain technology's long-term viability as an economic transformation engine.

Despite the hope, obstacles persist. The SEC has typically been reluctant to issue cryptocurrency ETFs, citing worries about market manipulation, a lack of transparency, and insufficient investor protections. However, if crypto markets get more sophisticated and institutional investors become more involved, these issues may be addressed, paving the path for greater acceptance.

Under its new leadership, VanEck's application could be a litmus test for the SEC's changing approach to bitcoin investment products. If the Onchain Economy ETF is approved, it might mark a watershed moment in regulatory acceptance, opening the door to more such products.

US Regulators Postpone Decision on BBitwise's10 Crypto Index Fund ETF

In related news, US regulators have decided to extend the decision-making process for Bitwise's 10 Crypto Index Fund ETF on the New York Stock Exchange's (NYSE) Arca platform. The delay, reported in a January 14 regulatory filing, demonstrates the continuous investigation of cryptocurrency-related financial products in the United States.

The proposed Bitwise 10 Crypto Index Fund ETF seeks to expose investors to a diverse portfolio of cryptocurrencies. If approved, it would be the first US-based spot crypto ETF to include holdings other than Bitcoin and Ethereum, extending into different cryptocurrencies, or "altcoins."

The fund will comprise a variety of significant digital assets, such as Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP, Cardano (ADA), Avalanche (AVAX), Bitcoin Cash (BCH), Chainlink (LINK), Uniswap (UNI), and Polkadot (DOT). This diverse portfolio reflects a concerted effort to attract investors seeking diversified exposure to the rapidly developing Bitcoin sector.

NYSE Arca applied to launch the ETF in December. Bitwise has positioned the fund as a simple, one-stop shop for people wishing to invest in various top-performing cryptocurrencies.

The SEC's move to extend its review period demonstrates how wary US regulators have been about cryptocurrency ETFs. Historically, the SEC has delayed or rejected ETF applications due to market manipulation, liquidity, and investor protection concerns.