VanEck's Journey with Crypto

22 July 2024

Menno Martens

Crypto Specialist and Product Manager

Explore major milestones for cryptocurrencies and VanEck’s door-opening efforts to integrate them into mainstream investing.

From its early days as a fringe concept, Bitcoin has grown to become a formidable asset, capturing the attention of investors worldwide. Today, even more digital assets are on investors' radars due to a rise in tokenization and companies committed to their development.

Just as VanEck has been at the forefront of gold investing since the firm’s inception, VanEck has played a pivotal role in shaping the broader adoption of digital assets as a strategic allocation in an investment portfolio.

A Timeline of VanEck’s Journey with Crypto

2009: Bitcoin is born

Bitcoin was introduced to the world by an anonymous entity, Satoshi Nakamoto. Bitcoin was designed to be a decentralized digital currency, free from governmental oversight.

2010: Bitcoin’s first commercial transaction

The first known commercial transaction using Bitcoin was the infamous purchase of two pizzas for 10,000 BTC. At that time, Bitcoin was worth only fractions of a penny.

2013: Bitcoin hits $1,000

Bitcoin's price soared to $1,000, marking a significant milestone and garnering attention from mainstream investors.

2017: VanEck enters the crypto conversation

VanEck recognizes that digital assets could provide both an alternative to existing currencies and gold, and technology to lower costs in the payments and financial industries. The firm starts to provide educational resources to help investors better understand Bitcoin, cryptocurrencies and other digital assets, and the role they play within a portfolio.

2017: Bitcoin’s meteoric rise and futures trading

Bitcoin’s price skyrocketed to nearly $20,000, drawing parallels to gold’s bull market in the 1970s. Additionally, the introduction of Bitcoin futures trading opened the doors for institutional investors, reminiscent of when gold futures were first introduced, providing legitimacy and stability to the market.

2017: VanEck becomes first ETF issuer to file for futures-based Bitcoin ETF

On August 11, 2017, VanEck filed an S-1 for a Bitcoin futures ETF, becoming the first ETF issuer to file for an ETF that would invest in Bitcoin futures.

2017: VanEck subsidiary MarketVector Indexes unveils digital assets benchmark indexes

On October 23, 2017, MarketVector launched a series of digital assets indexes designed to track the performance of the otherwise fragmented global digital assets markets, and became the first regulated index provider to meet investment industry benchmarking standards for digital assets indexes.

2018: VanEck files for a spot Bitcoin ETP

On June 6, 2018, VanEck filed for a spot Bitcoin exchange-listed product (in partnership with SolidX). We believe this structure gives investors a more efficient vehicle in which to gain direct Bitcoin exposure via a traditional broker, without paying roll costs associated with futures. The SEC subsequently rejected all spot BTC ETP applications due to concerns of “market manipulation”.

2020: Bitcoin halving event occurs

The Bitcoin network experiences a halving event (which occurs approximately every four years), and the incentives for mining new blocks are reduced by half. This incident brings increased attention to Bitcoin’s finite supply.

2020: VanEck launches a spot Bitcoin ETN in Europe

The firm’s European arm launched a Bitcoin ETN on November 19, 2020, providing Europeans exchange-traded access to spot Bitcoin exposure without the hassle of self-custody.

2021: VanEck builds its digital assets team

In 2021, VanEck began committing more resources to building out its digital assets research and investment team, bringing on board more crypto natives with knowledge of and passion for the digital assets space.

2021: VanEck becomes first ETF issuer to file for a spot ether ETP

On May 7, 2021, VanEck filed a S-1 for an ether ETP.

2021: El Salvador adopts Bitcoin as legal tender

El Salvador became the first country to allow Bitcoin to be used in any transactions. Bitcoin joins the US dollar, which the country had adopted in 2021, as legal tender, and as part of the initiative, the Salvadoran government launched a digital wallet to promote the use of Bitcoin.

2021: MarketVector establishes sector classification system for digital assets

MarketVector created the MarketVector Digital Asset Classification System in order to provide an efficient investment tool for capturing the breadth, depth, and progress of crypto sectors.

2021: VanEck leads $50M raise for Cadenza Ventures Crypto Fund

Cadenza will use the funds to invest in crypto platforms and blockchain technologies internationally.

2022: VanEck introduces the first NFT to be launched by an asset manager

On 5/2/2022, VanEck launched and distributed the VanEck Community NFT. This initiative was the first of its kind among asset managers. It offers exclusive access to an inclusive community that is both free and provides real-world utility.

2023: VanEck launches an Ethereum Futures ETF

VanEck launched an Ethereum Futures ETF, offering investors exposure to Ether futures through a regulated and familiar structure. The firm also announced it will donate 10% of its profits to the Protocol Guild to fund Ethereum core development for 10 years.

2024: VanEck launches a Bitcoin ETF

SEC approves spot bitcoin ETP applications for the first time. VanEck launched a Spot Bitcoin ETF and pledges 5% of profits to support Bitcoin core developers.

2024: VanEck becomes first ETF issuer to file for spot Solana ETP

On June 27, 2024, VanEck filed an S-1 for a Solana ETP, becoming the first ETF issuer to file for an ETP that would invest in spot Solana.

2024: VanEck launches an Ethereum ETF

SEC approves spot ether ETP applications for the first time. VanEck launches a Spot Ethereum ETF.

VanEck’s Long-Term Commitment to Bitcoin

Just as VanEck was a pioneer in gold investing, the firm has taken significant strides in bringing Bitcoin and Ethereum to a broader investor audience. By providing educational content, advocating for regulation, and introducing innovative investment vehicles, VanEck continues to play a pivotal role in the integration of digital assets into traditional investment portfolios. VanEck remains committed to empowering investors with the knowledge and tools needed to navigate this exciting and dynamic asset class.

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This is not financial research but the opinion of the author of the article. We publish this information to inform and educate about recent market developments and technological updates, not to give any recommendation for certain products or projects. The selection of articles should therefore not be understood as financial advice or recommendation for any specific product and/or digital asset. We may occasionally include analysis of past market, network performance expectations and/or on-chain performance. Historical performance is not indicative for future returns.

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