VanEck is planning to launch a new exchange-traded fund (ETF ). The ETF focuses on the mining industry, gold and cryptocurrencies. VanEck submitted an application to the SEC to approve the ETF.
source: SEC
At the end of 2021, VanEck's application for a spot bitcoin ETF was rejected by the SEC. The US regulators have disapproved of ETFs that are tied to the spot price of bitcoin.
The new ETF that was submitted is not linked to the spot price of bitcoin. The submission was made prior to an executive order on cryptocurrencies, which is expected to be signed by President Biden this week.
VanEck Digital Assets Mining ETF, which focuses only on crypto mining companies was sent for approval several months ago.
The ETF May Target Crypto Investors
Gold is currently trading at over $2,000 due to safe-haven flows. The economic sanctions on Russia and a possible oil embargo were sufficient to rattle the markets.
Due to the strong gains in the yellow metal, investors may be looking to invest in gold. Gold mining companies ETF such as GDX may be a popular choice.
VanEck is attempting to appeal to cryptocurrency investors by providing exposure to both gold and bitcoin mining. Although these are 2 separate markets, due to the tension between Russia and Ukraine, they may have become highly desirable (if approved).
To be eligible for the Global Digital Asset Mining Index, companies must generate at least 50% of their profits from mining digital assets or alternatively a technology that is related to crypto mining.
Companies are developing projects that have the potential to obtain at least half of their revenues from activities related to crypto mining.
VanEck GDX ETF, which has been outperforming since gold broke higher, has a 17% exposure to Newmont Corporation. Barrick Gold Corp makes up 12% of the ETF.
