Global investment manager VanEck has announced the launch of a new digital transformation ETF (DAPP), aimed at giving investors indirect exposure to Bitcoin and the larger crypto industry. These include mining companies, exchanges, and payment services striving to digitalize the world economy.
The company’s product manager, John Patrick Lee pointed out that while Bitcoin is the prime digital asset, the wider crypto industry encompasses a much bigger infrastructure. While the equity fund pledges to provide exposure to companies, it won’t invest in any digital asset directly or indirectly. Similarly, the fund will not invest in any IPOs either.
VanEck’s DAPP is launched with a 0.65% expense ratio and a total of 25 holdings and will service companies that can potentially generate half of their revenue from digital assets.
Managing Director of VanEck, Ed Lopez said that maturing digital assets have also led to greater innovation and rapid digitalization of the world economy. However, the equity funds available at the moment aren’t exclusive. DAPP is an effort to rectify that.
The fund which will track the performance of MVIS Global Digital Assets Equity Index is being endorsed as the next big step in increasing adoption and the utility of digital assets.
The company has also warned investors of a certain degree of risk involved when investing in the newly formed fund. The volatility of digital assets might well be reflected in the fund’s shares, causing major losses.