VanEck has launched the VanEck Onchain Economy ETF (NODE), an actively managed fund designed to give investors broad exposure to the companies powering the next wave of digital asset adoption. As the global economy accelerates toward blockchain integration, NODE offers a unique opportunity to participate in this transformation-without the complexities of direct cryptocurrency ownership.

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What is NODE ETF?

NODE is not just another crypto ETF. Instead of holding cryptocurrencies directly, NODE invests in a diversified portfolio of public companies and financial instruments deeply involved in the blockchain ecosystem. This includes:

1. Crypto-native firms such as miners, exchanges, and holding companies

2. Energy and infrastructure providers supporting blockchain operations

3. Fintech and e-commerce platforms integrating blockchain technology

4. Data centers and compute infrastructure essential for digital assets

At launch, NODE’s portfolio comprises between 30 and 60 companies, selected from a universe of over 130 blockchain-related enterprises. The fund’s holdings are continuously updated as new players enter the market through IPOs, spinouts, or strategic pivots, ensuring investors always have access to the most relevant opportunities in the onchain economy.

Dynamic, Actively Managed Exposure

NODE’s active management is a key differentiator. Rather than sticking to a static index, the fund’s managers rebalance the portfolio in response to crypto market cycle indicators and each company’s sensitivity to Bitcoin. This approach allows NODE to:

1. Ramp up exposure when risk is rewarded and markets are favorable

2. Reduce volatility during turbulent periods, helping investors stay allocated through cycles

3. Preserve flexibility to buy into attractive opportunities when valuations reset

Matthew Sigel, VanEck’s Head of Digital Assets Research and NODE’s portfolio manager, emphasizes that this strategy “lets us fine-tune the portfolio across market cycles,” providing both diversification and liquidity while avoiding over-allocation to high-beta names during volatile times.

Indirect Crypto Exposure-With Guardrails

While NODE does not invest directly in cryptocurrencies or commodities, it can allocate up to 25% of its assets to crypto-linked exchange-traded products (ETPs), such as Bitcoin ETFs, via a Cayman Islands subsidiary. This structure offers indirect exposure to digital assets while remaining compliant with U.S. tax regulations and regulatory requirements.

NODE’s focus on listed companies and regulated instruments means investors benefit from the transparency and protections of traditional markets, without the need for crypto wallets or direct asset custody. However, it’s important to note that crypto-linked ETPs may still involve risks such as market volatility and limited investor protections, as they are not registered under the Investment Company Act of 1940 or the Commodity Exchange Act.

Why NODE Now?

The launch of NODE comes at a pivotal moment. With regulatory attitudes toward crypto softening and institutional interest surging, the digital asset economy is rapidly expanding. VanEck’s NODE ETF offers:

1. A diversified, lower-volatility alternative to pure-play crypto strategies

2. Access to the full spectrum of blockchain innovation, from infrastructure to applications

3. Active management that adapts to market shifts and emerging trends

For investors seeking to ride the digital transformation wave-without the headaches of direct crypto exposure-NODE represents a compelling new option.

VanEck’s NODE ETF marks a significant step in bridging traditional finance and the onchain economy. As blockchain adoption spreads across industries, NODE provides a liquid, regulated, and actively managed way to capture the growth of companies leading this revolution.