VanEck to Launch ‘NODE’ ETF Targeting Crypto-Related Stocks
By Leon Okwatch
April 17, 2025
In a significant move toward expanding its cryptocurrency investment portfolio, VanEck has announced the upcoming launch of its new exchange-traded fund (ETF), designated as NODE, set to debut on May 14, 2025. This move marks an important step for the investment firm as it seeks to capitalize on the growing interest in digital assets.
ETF Approval and Launch Details
Matthew Sigel, VanEck’s head of digital assets, confirmed the approval of the NODE ETF by the U.S. Securities and Exchange Commission (SEC) in a post on X, a social media platform. The firm is positioning the ETF as a gateway for investors looking to gain exposure to the rapidly evolving digital asset economy without the need to directly hold cryptocurrencies themselves.
The NODE ETF, officially titled the Onchain Economy ETF, will offer investors diversified exposure to an array of public companies that are integral to the blockchain and digital asset infrastructure. This includes firms across various sectors such as asset management, data centers, cryptocurrency exchanges, Bitcoin mining operations, and hardware manufacturing.
Components of the ETF
The NODE ETF is designed to include 30 to 60 publicly traded companies selected from a diverse pool of over 130 candidates. This carefully curated selection aims to provide a broad representation of the industries that underpin the cryptocurrency ecosystem. Furthermore, the ETF holds the potential to invest up to 25% of its total assets in crypto-linked exchange-traded products, enhancing its reach within the digital asset space.
With an expense ratio of 0.69%, potential investors will appreciate the fund’s competitive fee structure. However, it’s important to note that the NODE ETF will not directly invest in cryptocurrencies; rather, it targets so-called "Digital Transformation Companies." These are defined in SEC filings as firms generating revenue through blockchain technology, cryptocurrencies, or distributed ledger technology. The ETF will also include mid-cap stocks and securities linked to commodities.
Regulatory Compliance and Strategy
To comply with U.S. tax regulations while maximizing market access, NODE plans to invest through a subsidiary based in the Cayman Islands. This strategy allows the fund to achieve indirect access to commodity futures, swaps, and other financial instruments essential for its investment strategy. However, the fund will impose a limitation by excluding stablecoins and capping investments through the subsidiary to 25% of its total assets each quarter.
VanEck is committed to broadening its selection of cryptocurrency-focused ETFs. The firm is also in the process of applying for additional ETFs related to other digital assets, including Avalanche (AVAX) and Binance Coin (BNB). Currently, VanEck’s spot Bitcoin ETF, known as HODL, boasts assets exceeding $1.2 billion, demonstrating the firm’s established presence in the cryptocurrency investment landscape.
Conclusion
The launch of the NODE ETF underscores VanEck’s strategic intent to provide investors with innovative pathways to engage with the burgeoning digital asset economy while maintaining a structure that adheres to regulatory standards. As the digital asset market continues to evolve, stakeholders will be watching closely to see how the NODE ETF performs in this dynamic environment.
For investors seeking alternative avenues to enter the cryptocurrency market, the NODE ETF presents a new and potentially lucrative opportunity, facilitating participation in the digital asset economy through established equity markets.
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