It is Europe’s first thematic ETF that offers exposure to companies involved in the cryptocurrency and blockchain industries.

The VanEck Vectors Digital Assets Equity UCITS ETF (DAPP) is listed on the London Stock Exchange and Deutsche Boerse. It will offer exposure to blockchain-focused companies involved in various digital businesses. (ETF Express)

The ETF has a total expense ratio (TER) of 0.65%.

DAPP is claimed to be the first ETF on the continent to target companies engaged specifically in digital asset projects.

VanEck Vectors Digital Assets Equity UCITS ETF (DAPP)

The ETF will invest in crypto and blockchain-facing businesses such as digital asset trading platform providers, hardware manufacturers, crypto-mining companies, and payment providers.

Also eligible for the fund’s portfolio are companies that enable the trading and custody of crypto assets, companies that provide services on blockchain patents, banks, and asset managers that connect the traditional financial world and the digital asset economy.

The fund will not invest in digital cryptos such as bitcoin, either directly or indirectly.

It tracks the recently launched MVIS Global Digital Assets Equity index which currently includes 26 pure-play digital asset companies.

A pre-condition for inclusion in the index is that companies must derive at least 50% of their revenues from digital asset projects or projects that have the potential to generate at least 50% of their revenues from the digital asset industry when developed.

Blockchain businesses will surpass cryptocurrencies

“The digital transformation is changing large parts of our economy,” says Martijn Rozemuller, CEO Europe at VanEck. “This is not just short-term hype, but rather is a long-term, structural development. Blockchain applications are finding more areas of use that now extend way beyond cryptocurrencies. Consequently, investors are increasingly looking to digital assets for investment opportunities.”

“Digital assets have gained tremendous momentum around the world in recent years,” says Gabor Gurbacs, Director Digital Assets Strategy at VanEck. “In addition to cryptocurrencies, which have seen strong growth, companies that provide the necessary infrastructure and enable digital asset trading and background processes in the first place are also benefiting. For investors who cannot or do not want to invest directly in individual cryptocurrencies, the ETF provides a good opportunity to invest in digital asset companies in both a targeted and diversified manner and to benefit from the positive development of the sector.”

Same strategy launched in the U.S.

Last month, VanEck launched in the U.S. the VanEck Vectors Digital Transformation ETF (NASDAQ: DAPP), designed to provide investors with pure-play exposure to the companies powering the digital transformation of the world’s economy.

This fund too tracks the MVIS Global Digital Assets Equity Index.

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