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VanEck has officially launched its Digital Assets Mining ETF

Updated: Aug 23, 2024
Published: Mar 9, 2022
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VanEck's Digital Assets Mining ETF (DAM) launched Wednesday, offering investors exposure to companies in the crypto asset mining industry.

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The ETF will invest primarily in mining companies

The exchange-traded fund will invest at least 80% of its total assets in securities of crypto miners that derive or could derive at least 50% of their revenues from mining activities or related technologies. It also plans to track the MVIS Digital Assets Mining Index and has a net expense ratio of 0.5%. The fund's top holdings include miners, mining manufacturers, emerging mining companies, and a blockchain-focused bank.

The largest weighting is Riot Blockchain (RIOT) at about 11%, followed by Hut 8 Mining (HUT) at 9.1%, Marathon Digital (MARA) at 8.3%, Iris Energy (IREN) at 7%, and Canaan (CAN) at 6.5% Following in the top 10 largest holdings are Hive Blockchain (HIVE) with 6.3%, Northern Data (NB2. GR) with 5.8%, Block (SQ) with 5.7%, Bitfarms (BITF) with 5.6% and lender Silvergate Capital (SI) with 4.8%.

VanEck follows in Valkyrie's footsteps

The ETF's launch comes just one day after Valkyrie's Bitcoin mining exchange-traded fund listed on NASDAQ. That fund has fallen more than 10% since its launch, roughly matching the decline of other mining companies and the price of Bitcoin (BTC). WGMI was the third fund in a series of ETFs focused on digital assets. Valkyrie successfully launched a Bitcoin futures ETF last October, as well as the Valkyrie Balance Sheet Opportunities ETF, which invests in publicly traded companies with Bitcoin exposure.

VanEck has already offered several ETFs focused on digital assets. In mid-November, the company launched a futures ETF, the Bitcoin Strategy ETF (XBTF), as well as the Digital Transformation ETF (DAPP). The company's spot Bitcoin ETF was one of several rejected by the Securities and Exchange Commission.

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