Digital frontiers have opened up a world of bountiful opportunity for investors who know where to look. And where might that be?
In the upcoming webcast, How to Invest in the Digital Assets Economy, Edward Lopez, Head of ETF Product, VanEck; and John Patrick Lee, ETF Product Manager, VanEck, will peruse the companies at the forefront of the digital asset ecosystem.
Specifically, the VanEck Vectors Digital Transformation ETF (DAPP) can help investors focus on companies engaging in business of digital assets. DAPP tries to reflect the price and yield performance of the MVIS Global Digital Assets Equity Index, which is a rules-based modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of companies involved in digital assets.
“The digital transformation is underway. Although still in early stages, the digital assets transformation has been rapidly developing in recent years, with publicly listed companies in this space growing in number, size and revenues. DAPP offers investors access to the long-term potential of the ecosystem,” according to VanEck.
As the Index is designed to be a pure-play overview of the relevant players in the space, to be eligible for inclusion, a company must generate at least 50% of its revenues from digital assets projects; generate at least 50% of its revenues from projects that, when developed, have the potential to generate at least 50% of their revenues from digital assets or digital asset projects; and/or have at least 50% of its assets invested in direct digital asset holdings or digital asset projects.
The Index provides significant exposure to key companies in mining, hardware, exchanges, holding and trading, payment gateways, patents and services, and banking. DAPP will not invest in digital assets (including cryptocurrencies) directly or indirectly through the use of digital asset derivatives.
“‘DAPP’ stands for ‘decentralized applications’; some companies are centralized solutions that rely on a decentralized network,” according to VanEck.
Financial advisors who are interested in learning more about the digital assets economy can register for the Tuesday, May 11 webcast here.