VanEck’s NODE ETF Debuts
May 14—30‑Stock Crypto Infrastructure Play With Cayman Tax Twist
VanEck, a leading asset management firm, has announced regulatory approval for its Onchain Economy ETF (NODE), which is scheduled to launch on May 14. The ETF, which is actively managed, is designed to give investors direct equity exposure to the companies driving digital asset infrastructure without the need to hold cryptocurrencies. The development was confirmed by Matthew Sigel, Head of Digital Assets Research at VanEck’s in an April 16 post. VanEck initially filed the application with the U.S. Securities and Exchange Commission (SEC) on January 15.
VanEck’s “NODE” ETF Set to Focus On Crypto Companies with Strong Fundamentals
According to the regulatory filing, the ETF, expected to go live in May, will consist of 30 to 60 equity holdings selected from a larger universe of over 130 publicly traded firms with strong ties to the digital asset ecosystem.
The ETF’s target portfolio spans a wide range of sectors important to the crypto economy. This includes investments in cryptocurrency exchanges, Bitcoin mining companies, data centers, asset managers, and firms with crypto holdings on their balance sheets. The fund will maintain a 0.69% management fee, and at least 80% of its net assets will be allocated to “Digital Transformation Companies” or digital asset instruments, as defined in the filing. VanEck emphasized that these “Digital Transformation Companies” are selected through a rigorous framework combining fundamental analysis, market trend assessment, strategic positioning, and relative valuation metrics. Additionally, the ETF will offer exposure to infrastructure providers, technology developers, and firms that offer the core services and hardware supporting digital asset operations.
Deliberate Stablecoin Omission, But Room for Foreign Securities
While the filing specifies that the fund seeks exposure to the largest digital assets by market capitalization, it distinctly excludes stablecoins from its digital asset strategy. Whether this exclusion applies only to the stablecoin products themselves or also extends to stablecoin-issuing companies is still unclear. Despite this, NODE maintains a flexible investment framework that allows for diversified exposure through foreign securities, American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), and a variety of commodity-linked instruments. To ensure compliance with U.S. tax regulations, NODE will incorporate an offshore subsidiary located in the Cayman Islands. This structure allows the ETF to gain indirect exposure to digital asset instruments, including commodity futures, swaps, and other pooled investment vehicles, a strategy similar to that employed by other commodity-linked ETFs in the past. VanEck stated that investments in the offshore subsidiary would be capped at 25% of the ETF’s total assets at the end of each quarter. This limitation ensures that NODE is compliant with federal rules restricting the level of direct commodity or crypto exposure that registered investment companies can hold.
VanEck’s ETF Expansion Strategy and Long-Term Crypto Vision
The launch of NODE also comes at a time when VanEck has been actively expanding its ETF offerings related to the crypto sector. In recent months, the firm filed applications for a BNB spot ETF and an Avalanche (AVAX) ETF, both of which appeared on Delaware’s official registry.
However, the path to approval for these newer ETFs is still unclear, as the U.S. SEC has delayed several decisions related to digital asset investment vehicles. VanEck’s proposals for changes to its Bitcoin Trust and Ethereum Trust, for example, were met with a 45-day postponement by the Commission earlier this month. Despite regulatory roadblocks, VanEck demonstrates a long-term commitment to the crypto space. In a November 2024 appearance on CNBC’s Squawk Box, Matthew Sigel declared that Bitcoin is “just getting started,” asserting that the asset has entered “blue sky territory” with no historical resistance. Sigel projected that Bitcoin could reach $180,000 in 2025, reflecting an aggressively optimistic outlook.
VanEck has also released forecasts for other major digital assets, notably suggesting that Solana’s market capitalization could grow to $250 billion, translating to a token price of $520.
