VanEck Updates Views on Digital Assets During Strong Growth in Crypto-Linked Funds

Prominent ETF producer VanEck has provided significant updates on its views on digital assets and the remarkable worldwide development of its portfolio of ETFs tied to digital assets. The company provided insights into the burgeoning cryptocurrency sector and the impressive rise of its crypto-linked funds, which are almost at $1 billion in assets. The company included Bitcoin as one of its “screaming buys” for 2024.

VanEck has been at the forefront of providing pertinent exposures to the market, having been acknowledged as the first ETF provider to register for a Bitcoin-related ETF in 2017. The company’s VanEck Digital Transformation ETF (DAPP), with assets in its crypto-linked funds about $1 billion globally, reached a noteworthy milestone on April 1st by reaching $100 million in assets under management (AUM).

The CEO of VanEck, Jan van Eck, emphasized the probable breakthrough in 2024 and the relevance of cryptocurrency in the current investing industry. He cited a number of reasons for the optimistic view on Bitcoin and the larger cryptocurrency market, including the expectation of the launch of a spot Bitcoin ETF in the United States.

Insights from DAPP Performance

The VanEck Digital Transformation ETF (DAPP) has demonstrated an impressive year-to-date performance of over +300% as of December 28. Matthew Sigel, Head of Digital Assets Research at VanEck, offered insights on the performance of the DAPP in 2023. Sigel acknowledged Bitcoin miners and Coinbase for their efforts to this feat.

Because the price of mining machines has lagged behind that of the currency, Sigel claims that bitcoin miners have seen strong profitability. With Bitcoin earnings being poured in new initiatives on the Bitcoin blockchain and other open-source networks like Solana, on-chain fundamentals have also improved.

Sigel highlighted Coinbase’s exceptional success, pointing to improvements in market share that are sustainable. He voiced confidence in the forecast that the halving of Bitcoin, a more accommodative U.S. Federal Reserve, and the ongoing uptake of cryptocurrencies in emerging nations will propel the cryptocurrency to an all-time high in the upcoming year. Sigel predicted that 2024 will be a successful year for the businesses included in the DAPP ETF.

Based on the anticipation that Bitcoin will hit new highs in 2024, as well as the favorable macroeconomic environment and growing worldwide use of cryptocurrencies, VanEck has a bullish prognosis for the market. The company believes that the launch of a spot Bitcoin ETF in the United States may serve as an additional catalyst for the cryptocurrency market’s expansion.

VanEck is still a major participant in giving investors access to digital assets as the cryptocurrency market develops, which helps the ecosystem continue to grow and mature.