VanEck Launches Crypto Mining ETF
Asset management firm VanEck has launched its Digital Assets Mining ETF (DAM) on Wednesday. The exchange-traded fund will allocate a minimum of 80% of its total assets in securities of crypto miners that generate or can potentially earn at least 50% of their revenue from mining activities or related activities and technologies.
VanEck Head of Product Management Ed Lopez said in a statement on Wednesday:
“Blockchains introduce transparency, efficiency and lower costs compared to traditional centralized databases and processes, but without miners, blockchain transactions cannot be verified and audited, making their role absolutely essential.”
According to Lopez it’s a “compelling time” for VanEck to launch the fund, with the crypto mining industry still in its early stages. The Head of Product said to expect demand from investors to be high.
The biggest holdings of the fund include miners, mining manufacturing companies, aspiring mining manufacturers and a blockchain-focused bank and has the following weighting:
Riot Blockchain (RIOT) at about 11%, followed by Hut 8 Mining (HUT) at 9.1%, Marathon Digital (MARA) at 8.3%, Iris Energy (IREN) at 7% and Canaan (CAN) at 6.5%. Rounding out the top 10 holdings are Hive Blockchain (HIVE) at 6.3%, Northern Data (NB2.GR) at 5.8%, Block (SQ) at 5.7%, Bitfarms (BITF) at 5.6%, and lender Silvergate Capital (SI) at 4.8%.
The ETF launch comes roughly a month after fellow asset manager Valkyrie launched its Bitcoin Miners ETF.
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Source: igaming
