According to a filing published by the United States’ Securities and Exchange Commission, New York-based investment management firm VanEck has filed for a ‘Digital Asset ETF’. The new asset will pave the way for institutional investors to get exposure to shares in companies that gain most of their value from cryptocurrencies.
The ETF will track the MVIS® Global Digital Assets Equity Index’s performance, which monitors the digital asset industry’s performance.
The companies include those operating crypto exchanges, payment gateways, mining operations, and those holding significant cryptocurrency amounts on their balance sheet, like MicroStrategy.
The fund will invest in industries producing at least 50% of their revenue from digital asset projects or developing half of their income from the digital assets industry.
Significant Digital Assets
Many industries in the crypto space are looking at going public, including Coinbase and Bakkt. The fund could include these shares in the future after a successful IPO.
However, the term “digital asset industry” is a broad terminology for companies that operate digital asset exchanges, software services, mining operations, payment gateways, equipment, and technology.
VanEck’s Bitcoin ETF woes
Recently, VanEck refiled for a Bitcoin ETF with the SEC, although it has come under fire from its former partner SolidX, which accuses it of plagiarism.
According to the complaint, SolidX and VanEck worked jointly to market the Trust’s shares to certified buyers as a precursor to the SEC’s approval of trust shares that could be traded publicly in an exchange-traded fund.
The complaint said that mere weeks after its lousy faith termination of the agreements, VanEck announced products that directly compete. It could not have begun to issue those products without working against SolidX’s interests while still its business partner.
SolidX has been trying to get a Bitcoin ETF to market since 2015. VanEck was the first company to file for a Bitcoin ETF registered under the Investment Company Act in 2017. The two companies decided to collaborate in 2018 to work towards a similar goal by exploiting both their areas of expertise.
VanEck Bitcoin Trust
Crypto-ETF has not been officially approved in the U.S. Many investment advisors have cited concerns saying that there is little incentive for registered investment advisors to put clients without a crypto exchange-traded fund’ cash into crypto. If the development comes to pass, it will be an achievement.