TLDR
- VanEck will launch the NODE crypto equities ETF on May 14.
- NODE invests in 30–60 companies tied to digital assets, not crypto directly.
- It’s actively managed and includes foreign and derivative exposure.
- A Cayman Islands subsidiary helps with tax compliance.
- NODE carries crypto-related risks and charges a 0.69% fee.
VanEck has confirmed plans to launch a new exchange-traded fund (ETF) focused on cryptocurrency-linked equities under NODE. The launch is scheduled for May 14, following the U.S. Securities and Exchange Commission (SEC) regulatory approval. The NODE ETF is designed to offer investors diversified exposure to companies actively participating in the digital asset economy.
Unlike spot Bitcoin or Ethereum ETFs, NODE ETF will not hold cryptocurrencies directly. Instead, it will invest in 30 to 60 publicly listed companies across the digital infrastructure landscape. This includes firms involved in blockchain development, crypto mining, digital asset exchanges, payment solutions, and related hardware and software services. The fund will allocate at least 80% of its net assets to entities classified as “Digital Transformation Companies” or digital asset-related instruments.
Actively Managed Structure and Investment Scope
NODE is structured as an actively managed fund. VanEck’s Head of Digital Assets Research, Matthew Sigel, will manage the portfolio, selecting investments from over 130 companies. Eligible firms include cryptocurrency exchanges, data center operators, energy and semiconductor providers, financial services firms, and companies holding digital assets on their balance sheets.
The ETF may invest up to 25% of its assets in exchange-traded products (ETPs) linked to digital assets such as commodity futures, swaps, and pooled vehicles. Additionally, the fund will have exposure to non-U.S. issuers, including those in emerging markets, and may invest in American and global depositary receipts. NODE’s investment policy excludes stablecoins from its portfolio and prioritizes firms with significant operations in blockchain-based services.
Cayman Islands Subsidiary and Tax Compliance Strategy
To align with U.S. federal tax regulations, the NODE ETF includes an offshore subsidiary domiciled in the Cayman Islands. This subsidiary structure allows indirect exposure to instruments such as commodity-linked derivatives, which would be restricted for registered investment companies under U.S. law.
Investments in the Cayman subsidiary will not exceed 25% of the fund’s total assets per quarter. The strategy is intended to ensure tax compliance and expand the ETF’s access to digital asset instruments. This approach mirrors methods previously employed in other funds managing exposure to alternative asset classes within regulatory frameworks.
Risk Considerations and Regulatory Standing
NODE exposes risks associated with digital asset technologies, including cybersecurity vulnerabilities, limited liquidity, regulatory changes, and market volatility. The fund’s prospectus outlines these risks in detail, citing the speculative nature of blockchain-based assets and the relative novelty of many companies.
VanEck filed for NODE with the SEC in January 2025 and received regulatory approval to proceed with public offerings. The ETF is classified as non-diversified under the Investment Company Act of 1940, allowing a higher concentration of assets in selected issuers.
The management fee for NODE is set at 0.69%. This launch follows VanEck’s earlier efforts in the crypto ETF space, including the HODL spot Bitcoin ETF and filings for Solana and Binance Coin (BNB) funds.
The NODE ETF stands out as a comprehensive actively managed fund targeting the broader digital asset infrastructure. It offers institutional and retail investors an equity-based entry point into the evolving crypto economy.
