Investment firm VanEck is broadening its suite of digital asset products, preparing to introduce a new crypto ETF under the ticker NODE on May 14.
Following approval from the U.S. Securities and Exchange Commission, VanEck is moving forward with the launch, as confirmed by its head of digital assets, Matthew Sigel. The upcoming fund, NODE, aims to provide investors with equity exposure to key companies powering the blockchain and digital asset economy.
Marketed as the Onchain Economy ETF, NODE is designed to connect investors with the expanding digital asset landscape without requiring direct ownership of cryptocurrencies. It offers a diversified portfolio of public companies involved in building blockchain-related infrastructure.
The actively managed ETF will select between 30 and 60 publicly traded companies from a potential pool exceeding 130. These firms span various sectors crucial to crypto infrastructure, including asset management, data centers, digital currency exchanges, Bitcoin mining operations, and hardware production.
Furthermore, the fund reserves the option to allocate up to a quarter of its assets to other crypto-linked exchange-traded products. Investors should note the ETF carries a 0.69% management fee and explicitly avoids direct investments in cryptocurrencies.
Instead, its focus lies on “Digital Transformation Companies.” As outlined in SEC filings, these are businesses generating revenue from blockchain technology, crypto assets, or distributed ledger systems. The portfolio may also encompass foreign securities, mid-capitalization stocks, and instruments linked to commodities.
To enhance exposure possibilities, NODE will utilize a subsidiary based in the Cayman Islands. This structure allows indirect access to commodity futures, swaps, and similar financial vehicles while maintaining compliance with U.S. tax regulations. However, the fund will steer clear of stablecoins and cap investments in the subsidiary at 25% of total assets each quarter.
This launch signifies VanEck’s ongoing commitment to expanding its cryptocurrency ETF offerings. The firm has previously sought approval for other crypto-focused ETFs, including those tracking Avalanche (AVAX) and Binance Coin (BNB). Its existing spot Bitcoin (BTC) ETF, known as HODL, currently holds over $1.2 billion in assets under management.