VanEck launches Digital Transformation ETF on Nasdaq
VanEck, a New York-based investment management company, has announced the launch of a new exchange-traded fund [ETF] called ‘Digital Transformation ETF’ on Nasdaq.
The primary goal of VanEck's latest product is to track companies that are working in the digital asset industry or those that have asset class exposure. According to him ad Officially, the new equity fund aims to offer investors “pure-play” exposure to companies in this space that are driving the digital transformation of the global economy.
The ETF in question, whose ticker is DAPP, requires that a company must generate at least 50% of its revenue from the digital asset project, generate at least 50% of your income from initiatives that, when developed, have the potential to produce a minimum of 50% of your income from digital assets or digital asset projects; and / or have at least 50% of its assets invested in direct holdings of digital assets or digital asset projects.
The press release also revealed that the DAPP index aims to provide substantial exposure to crucial platforms in the field of crypto asset mining, hardware, exchanges, holding and trading, payment gateways, patents and services, and banking. However, you will not invest capital in digital assets [including cryptocurrencies] directly or indirectly through derivatives of digital assets.
Ed Lopez, Managing Director, Head of Product ETF at VanEck noted that the digitization of the global economy has been gaining ground in recent years. The executive also recognized the growth of several innovative platforms that are not only focused on cryptocurrency mining, but also on terms of exchange of digital assets, payments, services, storage, e-commerce and others.
She continued adding,
“Up to this point, however, investors have had to choose between funds that too often included companies that only participated tangentially with digital assets. That is something that we have tried to solve with the launch of DAPP, a fund that we are very excited to be. bring to market ».
Commenting on the latest development, Giang Bui, director of US exchange-traded products at Nasdaq, stated that the latest move to launch the VanEck Vectors digital transformation ETF essentially indicated the value of Nasdaq as a resource for the developing digital asset strategies in the rapidly transforming ETF space.
VanEck and his earlier date with Bitcoin ETFs
Unlike the latest VanEck index, their Bitcoin ETF filings haven't been very successful. These exchange-traded funds aim to offer retail and institutional investors the opportunity to invest in a regulated financial product that involves Bitcoin without requiring them to invest directly in the crypto asset.
The SEC rejected several previous attempts at Bitcoin ETFs. This included the Winklevoss twins' proposal in 2013. The regulatory body had recently recognized VanEck's ETF proposal, giving it until April 29 to reach a conclusion regarding approval, rejection, or the possibility of an extended decision.