Global investment manager VanEck has launched a Digital Assets Mining (DAM) ETF, an exchange-traded fund customised to expose investors to firms within the DAM ecosystem. The fund will not directly invest in digital assets, rather it seeks to highlight the importance of miners.
VanEck’s DAM ETF is set to put a minimum of 80 percent of total assets into crypto mining securities, with the potential to earn at least 50 percent of their revenue from DAM activity. The ETF will be tracking the MVIS digital assets mining index closely, offering a net expense ratio of 0.5 percent.
Ed Lopez, head of product management for VanEck, has a lot of time for crypto miners:
Blockchains introduce transparency, efficiency and lower costs compared to traditional centralised databases and processes, but without miners, blockchain transactions cannot be verified and audited, making their role absolutely essential.
Ed Lopez, head of product management, VanEck
The VanEck DAM ETF follows asset manager Valkyrie’s bitcoin miners’ ETF, WGMI, a fund focusing predominantly on crypto miners using renewable energy.
Crypto Mining in the Greater Industry
Since October 2020, Aussies have been able to get increased exposure to crypto through blockchain mining investments. With local crypto trading volume increasing during the pandemic, crypto mining has offered an alternative, lower-risk method of participating in the market without losing any savings.
The crypto mining process is linked to every transaction that takes place, and it is integral to ensure miners are properly compensated for their efforts. If you’d like to understand more about the mining procedure, check out our guide to bitcoin mining.