- The proposed ETF product will invest in companies involved in gold and Bitcoin mining
- The investment firm previously filed for a spot crypto ETF but got rejected
New York-based ETF and mutual fund manager VanEck, earlier this month, applied a new ETF product with indirect exposure to cryptocurrency and precious metals. As per a recent SEC disclosure, the proposed offering will focus on securities in an index tracking digital assets and gold mining companies.
The global investment firm, which had $81.7 billion worth of assets under management as of November last year, submitted its application to the US Securities and Exchange Commission last Thursday. The disclosure did not feature specific details around the fund’s ticker.
A number of experts have found fault with the VanEck Gold and Digital Assets Mining ETF, noting that it has no specific market as Gold and Bitcoin investors are different.
Crypto editor and analyst at ETF.com Sumit Roy, as quoted by Blockworks, said, “I think VanEck is just trying different things and seeing what sticks. It’s the equivalent of sticking bitcoin and gold into an ETF […]. While I don’t want to count this ETF out, I don’t think it will see as much traction as more focused ETFs. The investors who buy bitcoin and those who buy gold are very different.”
VanEck has previously launched several crypto-related funds
In April 2021, the ETF issuer launched the Digital Transformation ETF, followed by the Bitcoin Strategy exchange-traded fund in November.
The asset manager earlier this year also launched a multi-token crypto fund that found a home on the SIX Swiss and the Deutsche Boerse Xetra exchanges. The exchange-traded note (ETN) offers exposure to seven different crypto tokens, including Ethereum, Bitcoin, Solana, and Avalanche.
VanEck’s previously proposed ETF that would offer direct exposure to crypto was rejected by the SEC late last year. The Gary Gensler-led commission hasn’t given any spot crypto ETF proposal the green light so far. Instead, it has punted decisions on pending applications while showing an inclination for futures-based ETFs.
Some market experts have set forth that the move to postpone decisions on spot crypto ETF proposals could be because the commission is waiting for better policies around crypto regulation to be implemented.
The US is gearing up for clearer regulations
Worth noting, VanEck’s latest ETF application comes when the US government and other authorities in the country are grappling to come up with the best way to regulate digital assets. A Reuters report published yesterday stated that US President Joe Biden would likely sign a crypto executive order on Wednesday.
The highly-anticipated order will mandate federal agencies to report on policies and strategies implemented to manage virtual assets. The SEC is one of the entities expected to be in the spotlight tomorrow regarding the same.