VanEck has launched Europe’s first thematic ETF that offers exposure to companies involved in the cryptocurrency and blockchain industries, ETF Stream can reveal.
The VanEck Vectors Digital Assets Equity UCITS ETF (DAPP) is listed on the London Stock Exchange and Deutsche Boerse with a total expense ratio (TER) of 0.65%.
Physically replicated, DAPP tracks the recently launched MVIS Global Digital Assets Equity index which currently includes 26 pure-play digital asset companies.
To be included in the index, companies must derive at least 50% of their revenues from digital asset projects or projects that have the potential to generate at least 50% of their revenues from digital asset industry when developed.
This includes companies involved in digital asset exchanges, payment gateways, mining operations, software services, equipment and technology and digital infrastructure.
Martijn Rozemuller (pictured), head of Europe at VanEck, commented: “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.”
Gabor Gurbacs, director of digital assets strategy at VanEck, added: “For investors who cannot or do not want to invest directly in individual cryptocurrencies, DAPP provides a good opportunity to invest in digital asset companies in both a targeted and diversified manner and to benefit from the positive development of the sector.”
This latest launch from VanEck is the first ETF in Europe to track companies across the entire cryptocurrency value chain.
Invesco is currently the only issuer in Europe to offer exposure to a pure-play blockchain ETF through the $1.2bn Invesco Elwood Global Blockchain UCITS ETF (BCHN).
VanEck has launched a number of thematic ETFs in recent months including a hydrogen economy ETF, the VanEck Vectors Hydrogen Economy UCITS ETF (HDRO), which listed on 1 April.