Blockchain is driving the digital transformation of the global economy. As a digital decentralized ledger of transactions that is distributed across many computers, blockchain is changing the way people think about finance, from currencies to banking. Our Crypto ETF provides a simple and effective way to invest in this disruptive technology.
The valuations of publicly listed digital asset companies have grown significantly in recent years, driven by the rising number of users and revenues. This trend is projected to continue, as digital assets usage and implementation – including cryptocurrency and decentralized applications – is expected to increase.
Source: VanEck, MVIS as of 26/04/2021. Revenues and market cap reflect pure-play digital asset companies as defined by MVIS and included in the composition of the MVIS Global Digital Assets Equity Index on 26/04/2021. The Index was not live prior to 08/03/2021.
*For 2021, market cap valuations represented as of 21/04/2021. For 2021 revenues, VanEck applied a 19% growth rate to 2020 revenues to calculate a forward projection. 19% represents half of the annualized growth rate of revenues of pure-play companies from 2012-2020. Pure-play digital asset company: as determined by the index provider, companies which (i) generate at least 50% of its revenues from digital assets projects; (ii) generate at least 50% of its revenues from projects that, when developed, have the potential to generate at least 50% of their revenues from the digital assets industry; and/or (iii) have at least 50% of its assets invested in direct digital asset holdings or digital asset projects. See important disclosures and index descriptions at end.
Access opportunities from across the globe that are part of a still emerging blockchain universe.
VanEck Crypto ETF targets the firms that are easiest to trade, based on trading volume and market capitalization.
Gain the purest exposure possible, with the Crypto ETF prioritizing companies that generate at least 50% of revenues from digital businesses and/or have at least 50% of their assets invested in digital assets. Where this is not possible, related semiconductor and online money transfer companies may be added for diversification.
Reflecting the rapid evolution of the blockchain universe, the underlying index is reviewed quarterly and eligible new companies may be added.
Risk of a Blockchain ETF: Investors should consider risks before investing. See dedicated Main Risk Factors section on this website.
Lower risk: Typically lower reward
Higher risk: Typically higher reward
Exists when a particular financial instrument is difficult to purchase or sell. If the relevant market is illiquid, it may not be possible to initiate a transaction or liquidate a position at an advantageous or reasonable price, or at all. This is one of the risk factors to take into account when planning an investment in a Crypto ETF.
A Crypto ETF may invest a relatively high percentage of its assets in a smaller number of issuers or may invest a larger proportion of its assets in a single issuer. As a result, the gains and losses on a single investment may have a greater impact on the Fund's Net Asset Value and may make the Fund more volatile than more diversified funds. That is another factor to take into account when considering an investment in a Crypto ETF.
The securities of smaller companies may be more volatile and less liquid than the securities of large companies. Smaller companies, when compared with larger companies, may have a shorter history of operations, fewer financial resources, less competitive strength, may have a less diversified product line, may be more susceptible to market pressure and may have a smaller market for their securities. This a further risk factor to consider when making an investment in a Crypto ETF.
For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.