The Investment Case for the Onchain Economy>
The Fund may invest most or all of its net assets in Digital Transformation Companies and/or Digital Asset Instruments but does not invest directly in digital assets or commodities. Digital asset instruments may involve risks from investing in digital asset ETPs, including extreme market volatility and limited investor protections, as these ETPs are not registered under the Investment Company Act of 1940 or the Commodity Exchange Act and do not offer the investor protections provided under those Acts.
Investing in the Infrastructure of the Onchain Future
The global economy is shifting toward a new digital foundation. Blockchain technology is maturing, and the adoption of digital assets is extending well beyond retail speculation. Today, the companies integrating, enabling, and building on digital asset infrastructure are increasingly relevant to broader capital markets.
The VanEck Onchain Economy ETF (Ticker: NODE) is an actively managed strategy designed to provide diversified equity exposure to these companies—those operating at the intersection of blockchain, traditional finance, infrastructure, and computing.
The Case for the Onchain Economy
Digital asset adoption continues to grow at a rapid pace. As of early 2025, global crypto ownership reached 660 million , up from 106 million in 2021—a four-year compound annual growth rate (CAGR) of nearly 60% .
Institutions are also getting more involved. Since early 2020, the value of bitcoin held by public companies has skyrocketed from under $400 million to more than $56 billion. This does not even include exchange-traded products (ETPs) and crypto-focused funds, representing another growing trend toward regulated exposure.
Governments are also participating. Some are integrating Bitcoin into treasury management or payment systems, and others are launching government-run mining operations. The onchain economy is expanding across industries, countries, and political systems.
A Broader, Equity-Based Approach
NODE invests in companies involved in the digital asset space, not the tokens themselves. Instead, it provides access to a wide array of companies operating in the digital asset economy, spanning ten categories that include:
- Crypto-native businesses (e.g., exchanges, miners, asset managers)
- “Holders”, companies where bitcoin or other digital asset holdings comprise a meaningful share of enterprise value
- Data center operators increasingly servicing AI and blockchain demand
- Energy and infrastructure providers enabling digital industry growth
- Consumer platforms and fintech embedding blockchain in financial services
- Semiconductor and hardware manufacturers supplying critical inputs
This diversified approach allows NODE to target the economic impact of blockchain technology through the equity markets, where business models, governance, and financial disclosures are familiar to institutional investors.
Active Management Informed by Market Cycles *
NODE integrates a systematic view of bitcoin’s market cycle into its portfolio construction. These cycles have historically influenced market sentiment and price behavior, especially the ‘halving cycle’ where bitcoin mining rewards are reduced by half. Instead of reacting to price swings, NODE uses consistent signals to guide its investments. These signals include:
- Net unrealized profits (NUP)
- Funding rates in derivatives markets
- Retail engagement (e.g., app store rankings for crypto platforms)
- Bitcoin cycle
These indicators inform category-level weightings and risk exposure.
- Anticipating bull markets , NODE leans into higher-sensitivity sectors such as miners, exchanges, and crypto-linked asset managers.
- Positioning for downcycles , the fund tilts toward more stable areas, including infrastructure, semiconductors, and consumer platforms with diversified revenue streams.
Active management ensures monthly category and position-level updates , with a full quarterly portfolio review.
Exposure to the Bedrock: Bitcoin
While NODE is an equity strategy, it can allocate up to 25% of assets to regulated digital asset instruments , such as exchange-traded products (ETPs), via a wholly owned subsidiary.
This allows the fund to maintain targeted exposure to Bitcoin, the bedrock of the onchain economy , within a regulated wrapper.
The equity portfolio may be more volatile than broader indices like the S&P 500, so Bitcoin exposure can serve as a structural complement. When cycle indicators are favorable, Bitcoin can offer additional upside without materially increasing risk, based on historical return profiles.
A Focused, Research-Driven Portfolio
NODE typically holds 30 to 60 high-conviction positions , selected from a universe of ~100+ actively monitored companies. All holdings must play a clear role in the onchain economy—whether by generating revenue from digital assets, enabling digital infrastructure, or integrating blockchain into core business operations.
The strategy emphasizes:
- Transparent digital asset exposure
- Disciplined capital allocation and governance
- Financial strength and long-term strategic alignment
Why VanEck?
VanEck has been building in the digital asset space since 2017, launching some of the earliest regulated crypto equity, futures, and spot products. That experience has taught us that active management is essential in this fast-evolving sector to find growth and avoid excessive leverage, overhyped narratives, and drawdowns exceeding 90%.
We’ve seen firsthand how quickly this space can shift—technologically, politically, and structurally. A passive approach may capture the theme, but only an active lens can navigate its risks .
With over $116 billion in assets under management and a dedicated digital assets research team, VanEck brings institutional infrastructure to an emerging asset class.
Conclusion
The onchain economy is more than a trend—it’s a transformation. NODE is designed to help investors participate in that transformation through a diversified, actively managed equity portfolio focused on the real businesses powering the shift.
As digital assets reshape the financial and computing landscape, NODE offers a thoughtful way to allocate funds to public companies building their foundation.
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