After months of waiting for the U.S. Securities and Exchange Commission to approve its Bitcoin ETF application, VanEck has turned to the EU market. The investment company has launched its first exchange-traded fund in Europe.
The new product offers exposure to companies that work with blockchain and crypto. The ETF tracks the MVIS Global Digital Assets Equity index, which keeps tabs on the performance of the biggest and most liquid companies in the digital assets sector.
Customers will be able to bet on the new product, the VanEck Vectors Digital Assets Equity UCITS ETF (DAPP). Moreover, the product has already been listed on the London Stock Exchange and Deutsche Boerse (DE:DB1Gn), offering a total expense ratio of 0.65 percent.
Speaking of the MVIS Global Digital Assets Equity index, the index includes nearly 30 companies that operate in the cryptocurrency sector. Each company on the index generates at least 50 percent of its income from projects that have to do with cryptocurrencies, including crypto exchanges, payment companies, and cryptocurrency mining.
Garbor Gurbacs, the digital assets director at VanEck, said that the new product is targeted at customers who do not want to make any direct investments in cryptocurrencies.
Meanwhile, in the U.S. scenes, several companies are still waiting for the SEC to approve or reject their ETF applications. In VanEck’s case, the Commission has postponed the date for its decision to June 17, 2021.