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- VanEck has introduced a new ETF intending to track the firms in the cryptosphere
- The ETF has been entitled as the Digital Transformation ETF with the ticker of DAPP
- DAPP is expected to track the performance of the MVIS Global Digital Assets Equity Index
VanEck, ETF and Mutual Funds manager, has launched a new Exchange Traded Fund (ETF). It is known that the latest ETF launched on Nasdaq aims to track and invest in the firms working in the cryptosphere. The ETF has been entitled Digital Transformation ETF and will help firms offer the nascent asset class exposure. Such firms include digital assets exchanges, miners, payments gateways, hardware, and technology providers. According to VanEck, the latest ETF will not invest in digital assets.
DAPP will track firms in the cryptosphere
The latest launched ETF by VanEck has a ticker symbol of “DAPP”. According to the official announcement, the fund would seek to track the MVIS Global Digital Assets Equity Index’s performance. The reason behind tracking is the index’s inclusion of firms generating or having the potential to generate at least 50% of the revenues from crypto projects or have at least 50% of its assets invested in direct crypto asset holdings and projects.
Why did VanEck come up with the ETF?
According to Ed Lopez, the managing director and head ETF product for VanEck, the digitalization of the global economy has picked up the pace. Over the past few years, it can be said that digital assets have matured. Indeed, the factor has driven several innovative firms’ growth, including exchanges, mining, storage, and e-commerce firms.
Following the current scenario, at such point, the investors have had to choose among funds that too often includes firms involved with cryptos. Hence, DAPP will ultimately solve such issues and offer investors exposure to firms powering the digital transformation.
DAPP has received approval in the second attempt
In December 2020, VanEck had asked for the approval for a Bitcoin ETF from the United States Securities and Exchange Commission (SEC). However, the attempt of the firm failed at the time. But in the firm’s second attempt for the DAPP, the US SEC acknowledged the application last month. Indeed, as per the US SEC, it could either approve or deny the application or extend the review period.
According to the official announcement, DAPP is designed to provide pure-play exposure to the firms that are actively participating in bringing digital transformation. The ETF manager’s efforts might benefit from the long-term structural growth of crypto assets.
