Asset management firm VanEck is targeting both traditional and novel investors with a new ETF that tracks the performance of cryptocurrency and gold mining companies.
Per a regulatory disclosure with the US SEC, the ETF will invest at least 80% of its assets in securities in a global index called “MVIS Global Gold and Digital Assets Mining Index.” The index tracks the performance of companies engaged in gold mining and crypto mining activities. Meanwhile, the ETF will not invest in digital assets directly or via derivatives.
The index requires Bitcoin or gold mining companies to generate at least 50% of their revenues from mining-related activities. It may also include cryptocurrency mining firms that derive 50% of their revenues from other digital asset-related projects, such as payment gateways, crypto exchanges, and more.
The new proposed ETF comes a few months after the company filed for a similar ETF that sought to invest in futures contracts, exchange-traded products (ETPs), and related investment vehicles linked to Bitcoin and Gold. It also filed for an ETF that primarily invests in securities and stocks of companies that are engaged in mining-related businesses in December.
The SEC rejected VanEck’s application for a spot Bitcoin ETF in November last year, along with several other companies with similar offerings. Meanwhile, the financial regulator had largely been positive on futures Bitcoin ETFs and accepted VanEck’s proposed bitcoin futures ETF in November 2021.
Written by: Gauri Bhatia
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