Newest VanEck ETF: Index Following the Performance of Crypto and Gold Mining Enterprises

Newest VanEck ETF: Index Following the Performance of Crypto and Gold Mining Enterprises

According to the application, the Exchange-Traded Fund (ETF) will track stocks in an index that evaluates the overall performance of gold and virtual asset mining enterprises.

VanEck, a financial services company with nearly $82 billion in AUM, has applied to the Securities and Exchange Commission (SEC) to introduce a new ETF. This ETF is designed to monitor performance via the index and find suitable gold and Bitcoin (BTC) mining operations to invest in. 

Per the filing with the Securities and Exchange Commission (SEC) earlier in the month, VanEck will buy securities in an index that tracks the profitability of gold and virtual asset mining companies. It would not invest through derivatives or in cryptocurrency directly. The document, though, made no reference to a ticker or a cost ratio.

Worries about a new round of US regulation are ever-present as VanEck’s potential fund is announced. President Joe Biden of the United States is anticipated to sign an executive order outlining the government’s cryptocurrency strategy sometime during the week’s end.

The directive directs government departments, including the Securities and Exchange Commission (SEC), to report information on the steps they have taken to protect digital assets by the end of 2022. The administration has been chastised for failing to provide sufficient clarification on the crypto bill which was approved in August 2021. 

The SEC declined a VanEck ETF that would have acquired Bitcoin (BTC) directly in November. Despite years of lobbying by industry leaders, the SEC has yet to sanction a fund of this nature.

Regulators may be postponing the licensing of these ETFs until a more comprehensive legislative framework is in effect, as the foundation for regulating the crypto industry begins.

VanEck unveiled the launch of its first crypto fund earlier in 2022. The exchange-traded note (ETN) is listed on the Deutsche Boerse Xetra and SIX Swiss exchanges. Ethereum (ETH), Polkadot (DOT), Solana (SOL), TRON (TRX), Avalanche (AVAX), and Polygon (MATIC) are the coins in which the ETN provides access, apart from Bitcoin (BTC)

VanEck launched its Digital Transformation ETF (DAPP) in April of 2021, which invests in companies that supply cryptocurrency exchanges, miners, and other cryptocurrency stocks, apart from creating the Bitcoin (BTC) Strategy Fund (XBTF), which invests in Bitcoin (BTC) futures contracts with a cash settlement.

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