The index tracks the prices of 26 pure-play digital asset companies, notably Galaxy Digital, Square, Voyager Digital, Riot Blockchain, Nvidia, Silvergate Capital, and others, with the US making up about two-thirds of allocation, followed by China, Canada, Germany, Taiwan, and the UK.
While the decision on VanEck’s Bitcoin ETF in the US has been postponed by the SEC, the company has launched Europe’s first thematic exchange-traded fund that offers exposure to companies involved in digital assets.
The VanEck Vectors Digital Assets Equity UCITS ETF (DAPP) that tracks the recently launched MVIS Global Digital Assets Equity index is listed on the London Stock Exchange and Deutsche Boerse.
Instead of investing in crypto assets directly or indirectly, this index includes trading platforms, miners, bankers, payment gateway operators, and other companies that provide the infrastructure.
In mid-April, VanEck rolled out the same product in the US, DAPP US, listed on Nasdaq, which currently manages $25 million in assets.
The index tracks the prices of 26 pure-play digital asset companies with notable positions, including Galaxy Digital (9.2%), Square (8.6%), Voyager Digital (7.6%), Riot Blockchain (6.1%), Marathon Digital (6.1%), Nvidia (5.4%), and Silvergate Capital (5.3%).
In terms of country, stocks from the US presently make up nearly two-thirds (64.0%) of the total index allocation, with the remaining weight distributed across China (11.8%), Canada (11.6%), Germany (4.9%), Taiwan (4.6%), and the UK (3.1%).
According to VanEck, the companies included in the ETF’s index have seen their revenue accelerate rapidly in 2020 to surpass $10 billion, up from $5bn in the previous two years. Martijn Rozemuller, CEO in Europe at VanEck said,
“The digital transformation is changing large parts of our economy. This is not just short-term hype, but rather is a long-term, structural development. Blockchain applications are finding more areas of use that now extend way beyond cryptocurrencies. Consequently, investors are increasingly looking to digital assets for investment opportunities.”