Planned VanEck ETF Aims To Invest in Miners — Both Crypto and Gold

The new filing comes as the ETF issuer is expected to launch a fund focused on only digital asset miners this week

article-image

Blockworks Exclusive Art by Axel Rangel

share

key takeaways

  • VanEck proposed an ETF in December that would invest in futures contracts and investment offerings linked to gold or bitcoin
  • Investors who buy bitcoin and those who buy gold are “very different,” ETF.com crypto editor says

VanEck is laying the groundwork for an ETF that would invest in companies mining both digital assets and gold.

The VanEck Gold and Digital Assets Mining ETF would invest primarily in the securities within an index tracking the performance of gold mining and digital assets mining businesses, according to a recent regulatory disclosure.

It would not invest in digital assets directly or via derivatives. The filing did not indicate a ticker or expense ratio.

A VanEck spokesperson declined to comment.

“I think VanEck is just trying different things and seeing what sticks,” said Sumit Roy, crypto editor and analyst at ETF.com. “It’s the equivalent of sticking bitcoin and gold into an ETF — a strategy that we’ve already seen employed and some people like.”

WisdomTree’s Enhanced Commodity Strategy Fund (GCC), for example, which invests in gold, expanded its strategy to include bitcoin futures in October.

“While I don’t want to count this ETF out, I don’t think it will see as much traction as more focused ETFs,” Roy said. “The investors who buy bitcoin and those who buy gold are very different.”

The plans follow VanEck proposing a gold and bitcoin strategy ETF in December. The fund would invest in futures contracts, exchange-traded products (ETPs) and other investments linked to gold or bitcoin.

“Gold bugs and the bitcoin maxis tend to go at each other’s throats,” Nathan Geraci, president of The ETF Store, said at the time. “Who are you marketing to here?”

VanEck’s largest US ETF is its gold miners fund (GDX). Launched in 2006, the fund has about $14.5 billion of assets. Overall, VanEck manages about $63 billion of assets across more than 60 US ETFs.

VanEck launched its Digital Transformation ETF (DAPP), which holds crypto exchanges, miners and other digital asset-related stocks, last April.

The firm also brought to market its Bitcoin Strategy ETF (XBTF), which invests in cash-settled bitcoin futures contracts.

An additional crypto-related product, the VanEck Digital Assets Mining ETF, is expected to launch Wednesday, according to a source familiar with the matter.

The Securities and Exchange Commission in November rejected a proposed VanEck ETF that would have bought bitcoin directly. The regulator has not yet approved such a fund despite industry participants pushing for one for years.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Avail.jpg

Research

Data publishing costs have historically been a bottleneck for rollups, and as more rollups launch, interoperability will continue to be a major challenge. Avail presents a potential solution to rollup fragmentation through its three products: Avail DA, Nexus, and Fusion, which together aim to unify the web3 experience.

article-image

Short-term “sell the news” reactions could follow new BTC price peaks months from now, industry watchers say — but only if history repeats itself

article-image

While crypto fundraising remains well off its bull market highs, Q1 data shows capital is returning to the space

article-image

Billed as a better BRC-20 fungible token standard, Bitcoin Runes launches tomorrow

article-image

Bitcoin miners need to explore unconventional energy avenues or be buried by the financial realities created by this halving

article-image

BlackRock’s iShares Bitcoin Trust continues to see daily positive net flows, though its inflow total for a single day hit a new low Wednesday

article-image

Binance is making moves, from receiving a new license in Dubai to switching its SAFU fund to USDC