New York-based investment management company, VanEck has announced the launch of an all-new exchange-traded fund [ETF] called ‘Digital Transformation ETF‘ on Nasdaq.
The main objective of VanEck’s latest product is to track firms that are working in the digital asset industry or those that have exposure to the asset class. According to the official announcement, the new equity fund aims at offering investors “pure-play” exposure to the companies of this space that are driving the digital transformation of the global economy.
The ETF, in question, whose ticker symbol is DAPP, requires that a company must at least generate 50% of its revenues from digital assets project, spawn at least 50% of its revenues from initiatives that, when developed, have the potential to produce a minimum 50% of their revenues from digital assets or digital asset projects; and/or have at least 50% of its assets invested in direct digital asset holdings or digital asset projects.
The press release also revealed that the DAPP Index aims to provide substantial exposure to crucial platforms in the field of crypto-asset mining, hardware, exchanges, holding and trading, payment gateways, patents and services, and banking. However, it will not pour in the capital in digital assets [including cryptocurrencies] directly or indirectly via digital asset derivatives.
Ed Lopez, Managing Director, Head of ETF Product for VanEck noted that the digitalization of the world’s economy has been gaining traction for the past several years. The exec also acknowledged the growth of various innovative platforms that are not just focused on cryptocurrency mining but also in terms of digital asset exchanges, payments, services, storage, e-commerce, and others.
She went on to add,
“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.”
Commenting on the latest development, Giang Bui, Head of U.S. Exchange Traded Products at Nasdaq stated that the latest move to launch the VanEck Vectors Digital Transformation ETF essentially indicated Nasdaq’s value as a resource for flourishing digital asset strategies in the rapidly transforming ETF space.
VanEck And Its Previous Tryst With Bitcoin ETFs
Unlike VanEck’s latest index, its Bitcoin ETF filings have not been quite successful. These exchange-traded funds aim at offering retail and institutional investors an opportunity to invest in a regulated financial product that involves Bitcoin without requiring them to invest in the crypto-asset directly.
Several past attempts for Bitcoin ETFs were rejected by the SEC. This included the proposal by the Winklevoss twins back in 2013. The regulatory body had recently acknowledged VanEck’s ETF proposal, which gave it until the 29th of April to come to a conclusion regarding an approval, rejection, or a chance of an extended decision.
If you found this article interesting, here you can find more Blockchain and cryptocurrency news