VanEck, a global investment manager, has launched the Digital Assets Mining ETF using the ticker signal “DAM.” The fund’s latest exchange-traded option is designed to give investors exposure to companies involved in digital assets mining.
Digital Assets Mining ETF(DAM)
DAM plans to invest at least 80% in crypto-asset miners. These miners must earn at least 50% from mining activities, related technology, or have the ability to do so. The net expense ratio for the fund is 0.5%.
DAM aims “to track as closely as possible, prior to fees and expenses the price and yield performance the MVIS Global Digital Assets Mining Index(MVDAMTR)”. The MVIS index is designed to help investors track overall performance of companies in the digital asset mining ecosystem.
The fund’s investment manager clarified that it will not invest directly in digital assets (including cryptocurrency) or indirectly through digital asset derivatives.
Riot Blockchain Inc and Hut 8 Mining Corp are the top ten constituents based on weight. Marathon Digital Holdings Inc, Iris Energy Ltd., Canaan Inc., Hive Blockchain Technologies. Bitfarms Ltd/Canada. Northern Data Ag and Silvergate Capital Corp-Cl A have 11.60%, 8.79%.
VanEck’s Head of Product Management Ed Lopez discussed the benefits of blockchains over traditional centralized database processes. He also stressed the importance of miners, without whom transactions can not be validated.
VanEck is one of the most active companies in filing with the United States Securities and Exchange Commission for a Bitcoin ETF. VanEck’s November 2017 proposal to launch a spot Bitcoin ETF was rejected by the SEC after several delays.
VanEck’s ETF is listed on the Nasdaq Stock Market a month after Valkyrie’s Bitcoin Miners exchange traded fund (ETF), “WGMI” was approved.
According to the filing, the company stated that it would invest at least 80% of its net assets into companies that earn at least 50% from Bitcoin mining operations.
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