NEW YORK–(BUSINESS WIRE)–VanEck today announced the launch of VanEck Digital Assets Mining ETF (DAM)expanding the firm’s crypto and blockchain-focused investment offerings and providing investors with access to businesses critical to driving digital transformation.
DAM provides targeted exposure to digital asset mining companies, which validate and process blockchain transactions to create new units of cryptocurrency.
“Mining is essential to the growth and functioning of digital assets. Miners secure, record and store data on the blockchain and are currently the largest segment of the publicly traded digital asset ecosystem,” said Ed Lopez, Head of Product Management at VanEck. “Despite growing rapidly, many leaders in the digital asset mining category are still in the early stages of growth. This factor, combined with current high demand levels and supported for all types of digital assets, makes this a compelling time for us to launch DAM to focus specifically on digital asset miners.
Digital asset mining companies use specialized computer chips in conjunction with software to solve complex mathematical problems. By doing so, the transactions that exist on the current blocks can be verified and the miners themselves are rewarded with newly issued cryptocurrency.
“Blockchains introduce transparency, efficiency, and lower costs compared to traditional centralized databases and processes, but without miners, blockchain transactions cannot be verified and audited, making their role absolutely critical,” Lopez added.
DAM seeks to closely monitor the price and yield of MVIS Digital Assets Mining Index (MVISDAM). To be eligible for inclusion in the index, a company must generate at least 50% of its revenue from digital asset mining or mining-related technology or have projects that, once developed, have the potential to generate at least 50% of their revenue. from digital asset mining activities or mining-related technologies. The Fund will not invest in digital assets (including cryptocurrencies) directly or indirectly through the use of digital asset derivatives.
VanEck is an undisputed leader in the field of digital assets, both in terms of the investment solutions it pioneered and the research it regularly shares with the market. The company recognized in 2017 that digital assets could provide an alternative store of value to existing currencies and gold, as well as technology solutions that could reduce costs in the payments and financial investment industries.
DAM joins a range of digital asset-focused VanEck ETFs that also includes the VanEck Digital Transformation ETF (DAPP), which provides diversified exposure to companies at the forefront of digital asset transformation, such as digital asset exchanges, miners and other key infrastructure companies; and the VanEck Bitcoin Strategy ETF (XBTF)the cheapest bitcoin-linked ETF1 in the US market, providing actively managed exposure to Bitcoin futures.
DAM is listed on NASDAQ and has a net expense ratio of 0.50%.
VanEck is accustomed to looking beyond the financial markets to identify trends that can create impactful investment opportunities. We were one of the first US asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993 and exchange-traded funds in 2006 – which went on to shape the investment management industry.
Today, VanEck offers active and passive strategies with attractive exposures supported by well-designed investment processes. As of January 31, 2022, VanEck managed approximately $78.6 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from basic investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are powered by extensive bottom-up research and stock selection by portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity and transparency are essential to experienced decision-making regarding the selection of markets and indices underlying VanEck’s passive strategies.
Since our founding in 1955, putting the interests of our clients first, in all market environments, has been central to the firm’s mission.
1Based on total fund operating expenses versus Bitcoin-related competitors as of 12/11/2021.
The Fund will not invest in digital assets (including cryptocurrencies) (i) directly or (ii) indirectly through the use of digital asset derivatives. The Fund will also not invest in initial coin offerings. Therefore, the Fund is not expected to follow the price movement of a digital asset.
Investors in the Fund should be prepared to accept a high degree of volatility in the price of Shares in the Fund and the possibility of significant losses. An investment in the Fund involves a substantial degree of risk. An investment in the Fund is not a deposit with any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Accordingly, you should carefully consider the following risks before investing in the Fund, each of which may materially and adversely affect the value of an investment in the Fund.
An investment in the VanEck Digital Assets Mining ETF (DAM) may be subject to risks which include, but are not limited to, the risks of investing in digital asset miners, investing in equity securities, Canadian issuers, small and mid capitalization companies, information and financial technologies, foreign securities, certificates of deposit, market, operational, index monitoring, concentration of authorized participants, new fund, absence of a previous active market, problems trading, passive management, trading of fund shares, premium/discount and liquidity of fund shares, non-diversification and concentration risks which may make such investments volatile in price or difficult to trade. Small and mid capitalization companies can be exposed to high risks.
Digital asset miners and other hardware needed to mine digital assets are subject to the risk of malfunction, technological obsolescence, global supply chain issues, and the difficulty and cost of obtaining new material. Malfunctions and normal wear and tear will, at any time, cause a number of digital asset miners to be taken offline for maintenance or repair. Any major malfunction of a digital asset miner could cause significant economic damage. Physical degradation of miners will require replacement of miners. Additionally, as technology evolves, it may be necessary to acquire new miner models to stay competitive, which can be costly and may be in short supply. Given the long production period to fabricate and assemble digital asset miners and the current global shortage of semiconductor chips, there is no guarantee that miners will be able to acquire or maintain enough mining computers. digital assets or cost-effectively replace parts for efficient and cost-effective digital. asset mining operations.
An investment in the VanEck Digital Transformation ETF (DAPP) may be subject to risks which include, among others, the risks associated with investing in digital transformation companies, investing in equity securities, issuers Canadian, small and mid cap companies, information technology and financial sectors, foreign securities, market, operational, index tracking, concentration of authorized participants, new fund, lack of prior active market, problems trading, passive management, trading in fund shares, premium/discount and liquidity of fund shares, undiversified and concentration risks which may make these investments volatile or difficult to trade. Small and mid capitalization companies can be exposed to high risks.
Technology relating to digital assets, including blockchain, is new and in development and the risks associated with digital assets may not fully emerge until the technology is widely used. Digital asset technologies are used by companies to optimize their business practices, whether by using technology within their business or by leveraging business sectors involved in the operation of technology. The cryptographic keys necessary for the transaction of a digital asset may be subject to theft, loss or destruction, which could harm the business or operations of a company if it depended on the digital asset. There may be risks posed by the lack of regulation of digital assets and any future regulatory developments could affect the viability and expansion of the use of digital assets.
An investment in the VanEck Bitcoin Strategy ETF (XBTF) may be subject to risks which include, but are not limited to, market and volatility, investing, futures, derivatives, investments related to bitcoins and forward contracts. bitcoin futures, derivatives, counterparty, investment capacity, target exposure and rebalancing, borrowing and leverage, indirect investment, credit, interest rate, illiquidity, investment in other investment companies , management, new fund, undiversified, operational, portfolio rotation, regulatory, pensions, tax, cash transactions, concentration of authorized participants, no guarantee of active trading market, of trading problems, of trading in shares of funds, premium/discount, and liquidity of fund shares, U.S. government securities, debt securities, municipal securities, money market funds, securities securitized/asset backed and sovereign bond risks, which could materially and adversely affect the value of an investment in the Fund.
MVIS is the indexing business of VanEck, a US-based investment management firm and provider of VanEck ETFs. The performance of an index is not representative of the performance of a fund. Indices are not securities in which investments may be made.
Investing involves substantial risks and high volatility, including possible loss of capital. An investor should carefully consider a Fund’s investment objective, risks, charges and expenses before investing. To obtain a prospectus and a summary of the prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and simplified prospectus carefully before investing.