VanEck proposes an exchange-traded fund to track Bitcoin and gold mining companies

Key Insights:

• VanEck suggested an ETF to follow the success of gold and bitcoin mining.

• The ETF would not invest directly in digital assets or via derivatives.

• Notably, the SEC disallowed a VanEck ETF that was scheduled to contain BTC in November.

  
  

VanEck, a global investment manager, has filed an application with the Securities and Exchange Commission (SEC) to create a new exchange-traded fund (ETF) to monitor gold mining and Bitcoin (BTC) mining firms.

Gold and BTC Mining 

VanEck has proposed an ETF to track bitcoin and gold mining.

According to a recent regulatory filing, the firm's Gold and Digital Assets Mining ETF would effectively follow the securities inside an index that tracks the performance of gold mining and digital asset mining companies.

The ETF would not invest directly in digital assets or via derivatives. The application, however, did not provide a ticker or expenditure ratio.

Sumit Roy, a crypto editor and analyst, said of VanEck's planned ETF, "I believe VanEck is simply testing new things and seeing what sticks." It's the same as putting bitcoin and gold into an ETF — a method that we've previously seen used and that some people enjoy."

The SEC document, which was submitted on March 3, would concentrate on shares in an index that measures the performance of gold mining and digital asset mining companies.

The latest plan is consistent with VanEck's concept for a gold and Bitcoin strategy ETF, which was issued in December. The fund would be backed by futures contracts, exchange-traded products (ETPs), and other gold and bitcoin-related assets.

Having said that, it is worth noting that the SEC disallowed a VanEck ETF that was scheduled to contain BTC in November. Until recently, authorities have been skeptical of a spot traded ETF.

VanEck's ETF Competition

The US-based investment company launched its Digital Transformation ETF in early 2021, which invests in companies that supply cryptocurrency exchanges, miners, and crypto-related equities.

VanEck's gold miners fund (GDX), introduced in 2006, is one of the biggest US ETFs. The gold miners' fund is worth around $14.5 billion. VanEck manages about $63 billion in assets across more than 60 ETFs in the United States.

According to media reports, a crypto-related product – VanEck Digital Assets Mining ETF – is expected to debut on Wednesday.

Cboe Global Markets banned trading in the VanEck Russia ETF on March 5, citing a decline in price since Russia invaded Ukraine last week.