VanEck Launches NODE ETF: Investment Opportunities and Risk Management in the Onchain Economy

NODE ETF’s Core Positioning and Background

On May 14, 2025, global asset management giant VanEck officially launched the VanEck Onchain Economy ETF (NODE), trading under the ticker CBOE: NODE. This marks VanEck’s latest strategic move in the crypto space following the BTC Spot ETF (HODL) and the Digital Transformation ETF (DAPP). The NODE ETF focuses on investing in core companies within the “onchain economy” ecosystem, including mining firms, exchanges, energy providers, and fintech platforms. It aims to reduce market volatility risk through active management strategies, providing traditional investors with a compliant exposure to digital assets.

The launch of the fund is driven by the rapid expansion of the onchain economy—global onchain asset trading volume surpassed $40 trillion in 2024, and traditional institutions are showing increasing demand for crypto infrastructure. By investing in publicly listed companies rather than holding tokens directly, NODE seeks to strike a balance between risk control and return potential.

This market insights article discusses NODE ETF’s investment strategy, market positioning, and its potential impact on the convergence of traditional finance and the crypto ecosystem.

Investment Strategy and Portfolio Structure

NODE ETF employs an active management strategy, dynamically adjusting the portfolio to respond to market cycles:

• Screening Criteria: Initially covering over 130 companies related to the onchain economy, with screening indicators including Bitcoin holdings, hash rate share, and blockchain technology integration level.

• Core Holdings: Aims to hold 30–60 highly relevant companies, such as mining firm Marathon Digital, exchange Coinbase, and chipmaker NVIDIA, avoiding overconcentration in high-volatility assets.

• Derivatives Allocation: Up to 25% of assets may be allocated to Bitcoin ETPs (e.g., HODL, IBIT) to enhance flexibility.

Additionally, NODE evaluates companies’ Bitcoin price sensitivity (Beta value) to reduce exposure during market bubbles and increase allocation during bear market lows, achieving a dynamic “buy low, sell high” balance.

Market Reaction and Competitive Landscape

On its first trading day, NODE’s volume exceeded $18 million, with a 16% price increase in 24 hours, pushing Ethereum ecosystem TVL back up to $80 billion. Key market dynamics include:

• Institutional Response: Jump Trading provided $80 million in liquidity support, while RedotPay launched a compliant custody solution to attract Southeast Asian capital.

• Ecosystem Integration: Collaborations with public chain protocols like Sui and Solana to develop enterprise-grade tools such as onchain fund management interfaces.

• Competitive Positioning: Differentiates from traditional crypto ETFs (e.g., BlackRock’s IBIT)—IBIT passively tracks Bitcoin spot, while NODE reduces volatility through active management and derivative hedging.

Potential Risks and Regulatory Challenges

Although NODE ETF reduces the risks associated with direct token holdings, it still faces several challenges:

• Regulatory Uncertainty: The U.S. SEC’s increasing scrutiny on crypto ETPs may restrict the proportion of derivatives allowed; some ETPs have yet to meet Investment Company Act of 1940 requirements.

• Market Volatility Transmission: The performance of holdings is highly correlated with Bitcoin price. If the market enters a bear cycle, the fund’s NAV may suffer significant drawdowns.

• Limited Ecosystem Coverage: Current holdings are heavily skewed toward the Bitcoin ecosystem, with insufficient exposure to high-performance chain enterprises like Ethereum or Solana, potentially missing out on multi-chain growth trends.

Users can refer to the JuCoin Institutional Investment Guide for strategies on managing ETF investment risks.

Future Outlook: A Paradigm Shift in Institutional Participation

NODE ETF’s future plans focus on technological upgrades and global expansion:

• Tech Integration: ZKML (Zero-Knowledge Machine Learning) is scheduled for Q3 2025 to optimize risk assessment models, such as predicting energy cost fluctuations for mining companies.

• Cross-Chain Expansion: Broadening investments to include Ethereum staking service providers and Rollup solution providers.

• Emerging Markets Expansion: Emphasizing growth in Southeast Asia and Africa, partnering with local financial institutions to offer customized products.

Industry analysis suggests that NODE’s “active management + compliant derivatives” model may become the standard path for traditional capital to access the onchain economy. However, success will depend on addressing regulatory compatibility, liquidity reliance, and ecosystem fragmentation. As the onchain economy permeates global trade, active management may prove to be the optimal balance between risk and opportunity.