This ETF will not offer direct or indirect exposure to any specific cryptocurrency. The ETF is already listed on the London Stock Exchange.
After entering the US ETF market and listing on Nasdaq, investment manager VanEck has extended its borders by bringing an ETF of bitcoin and cryptocurrency companies to the European market. Since May 6, it has already been listed on the London Stock Exchange, and it is the first of its kind to reach the European region.
The release appeared through a press release. This press release shows in detail that the ETF, which bears the name VanEck Vector Digital Assets Equity UCITS ETF, trades through the monitoring of the MVIS Global Digital Assets Equity Index. This index also has companies in the field of digital assets, including companies aiming at the cryptocurrency environment.
For a company to appear in the Global Digital Assets Equity Index, it must receive at least 50% of its gross income in digital assets, which may also add crypto assets.
An ETF or listed investment fund, allows investors to set positions on assets, such as in this case, through a set of shares of the same category gathered under a single value.
In this case, DAGB, the name of the VanEck ETF ticker, is traded through the performance of around 26 companies in the digital asset area, including mining companies such as Riot Blockchain, and exchanges such as Coinbase Global and Huobi Technology. Others are not exclusively linked to cryptocurrencies, such as NVIDIA, a video card manufacturer.
Digital Assets and Their Great Momentum
It is also important to consider that this ETF is indexed against companies in the digital asset category, as well as for cryptocurrencies, ETF does not fix a position within its price against the price of any crypto active.
Digital assets have gained fantastic fame around the world in recent years. As a combination with cryptocurrencies, which have seen a solid increase, companies that provide the necessary infrastructure that open doors to the exchange of digital assets and back-end processes also represent a vast benefit.
For investors who are not able or do not want to invest directly in individual cryptocurrencies, this ETF shows greater chances to invest in digital asset companies in a diversified way and to benefit from the positive development of the sector. These ETFs allow investors to gain direct access to markets in the field of cryptocurrencies, but, also, with much more controlled volatility than investing in the asset itself.
Bitcoin Companies ETF that Appear Listed on Nasdaq
Although VanEck is the first to bring an ETF from the cryptocurrencies and assets category to Europe, it already saw the light in the United States stock market last April when DAPP (US version of DAGB) began to appear on the Nasdaq stock market.
As with the launch of the VanEck ETF for the European region, its trade will take effect through the MVIS Global Digital Assets Equity Index, and it won’t include direct exposure on the price of any cryptocurrency, nor on derivatives or initial offerings. (ICO).
By: Jenson Nuñez