The Fund’s investment objective is capital appreciation, which it generally seeks to achieve by investing in "smart contract" digital assets. Smart contracts are a type of computer software that enables functions written in code and published on the blockchain to execute automatically based on predetermined conditions.
- Diversified exposure to the largest and most liquid smart contract software protocols.
- Smart contract platforms may serve as a lynchpin of growth-oriented portfolios.
- Quantitative and qualitative screening will limit holdings to only the most advanced, investable digital asset ecosystems.
The Fund’s investment objective is capital appreciation, which it generally seeks to achieve by investing in “smart contract” digital assets, as described below. The value of the Shares will reflect the value of the digital assets held by the Fund (the “Fund Components”), less the Fund’s expenses and other liabilities. The Fund will value the digital assets that constitute the Fund Components based on prices of each digital asset as provided by MarketVector Indexes GmbH (“MVIS”), unless otherwise determined by the Sponsor in its sole discretion. MVIS is the index business of VanEck.
Inception: February 2022
Management Fee: 1.00%
Performance Fee / Redemption Fee: None
Min. Investment: $100,000
Additional Investment: $25,000
Investor Type: Qualified Purchasers
Redemptions: Quarterly (with 30 days notice)*
An investment in the Fund is subject to a high degree of risk and investors may lose all their investment in the Fund. Risks include among others, risks associated with cryptocurrencies, smart contracts, complex software and programming, loss or theft of fund assets, Blockchain miners or validators, miners ceasing to mine blocks due to lack of incentive, development or acceptance of blockchain networks and assets, changes in the governance of a cryptocurrency blockchain network, long-term viability of cryptocurrencies, networks scaling challenges, concentrated ownership of digital assets, security threats, volatile price fluctuations, irreversible transactions, shallow trade volume, extreme hoarding, low liquidity and high bankruptcy risk, unsecure local storage sites, malware and data loss, public or third-party blockchain, inaccurate valuation, emergence or growth of other cryptocurrencies and/or methods of investing in cryptocurrencies, temporary or permanent "forks", lack of banking services, geopolitical events, lack of benefits from forks or "airdrops", lack of regulatory protections and future regulatory developments could affect the viability and expansion of the use of the Fund. Please contact us at firstname.lastname@example.org for the Private Placement Memorandum which contains additional risk information.
The General Partner may suspend or limit the right of all Limited Partners to make withdrawals under certain circumstances as laid out in the Private Placement Memorandum below.
What Are Smart Contracts?
What are smart contracts? A useful tool within the blockchain, smart contracts are trackable, irreversible programs, stored on a blockchain, that self-execute when predetermined conditions are met. Smart contracts could be programmed to work for the masses, replacing certain systems, or to carry out agreements between individuals.
Important Definitions & Disclosures
* Redemptions may be suspended under certain circumstances. Distributions of withdrawal proceeds are expected to be in U.S. dollars but may also be made in-kind digital assets, or in combination of cash and digital assets.
The VanEck Smart Contract Leaders Fund is not an investment company registered under the Investment Company Act of 1940, and therefore is not subject to the same regulatory requirements as mutual funds or ETFs registered under the Investment Company Act of 1940. The Fund is not a commodity pool for purposes of the Commodity Exchange Act. Before making an investment decision, you should carefully consider the risk factors and other information included in the Private Placement Memorandum.
The Fund is available to Qualified Purchasers Only. Please carefully read the Private Placement Memorandum before investing. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. The Fund has no operating history and involves a significant degree of risk. There is no guarantee the Fund will achieve its investment objective and investors may lose their entire investment. The Fund is not suitable for all investors. Past performance is not a guarantee of future results.
The Partnership's investment program is speculative and entails substantial risks. There can be no assurance that the Partnership's investment objective will be achieved.
An investment in the Fund is subject to risks which include among others, risks associated with cryptocurrencies, smart contracts, complex software and programming, loss or theft of fund assets, Blockchain miners or validators, miners ceasing to mine blocks due to lack of incentive, development or acceptance of blockchain networks and assets, changes in the governance of a cryptocurrency blockchain network, long-term viability of cryptocurrencies, networks scaling challenges, concentrated ownership of digital assets, security threats, volatile price fluctuations, irreversible transactions, shallow trade volume, extreme hoarding, low liquidity and high bankruptcy risk, unsecure local storage sites, malware and data loss, public or third-party blockchain, inaccurate valuation, emergence or growth of other cryptocurrencies and/or methods of investing in cryptocurrencies, temporary or permanent “forks”, lack of banking services, geopolitical events, lack of the benefits from forks or “airdrops”, lack of regulatory protections and future regulatory developments could affect the viability and expansion of the use of the Fund.
The information herein represents the opinion of the author(s), an employee of the advisor, but not necessarily those of VanEck. The securities/ financial instruments discussed in this material may not be appropriate for all investors. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security/financial instrument, or to participate in any trading strategy.
Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data.
Cryptocurrency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Cryptocurrencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not generally backed or supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional currencies. The value of cryptocurrency may be derived from the continued willingness of market participants to exchange fiat currency for cryptocurrency, which may result in the potential for permanent and total loss of value of a particular cryptocurrency should the market for that cryptocurrency disappear. Cryptocurrencies are not covered by either FDIC or SIPC insurance.
Investing in cryptocurrencies comes with a number of risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. There is no assurance that a person who accepts a cryptocurrency as payment today will continue to do so in the future.
The features, functions, characteristics, operation, use and other properties of the specific cryptocurrency may be complex, technical, or difficult to understand or evaluate. The cryptocurrency may be vulnerable to attacks on the security, integrity or operation, including attacks us.
VAN ECK ABSOLUTE RETURN ADVISERS CORPORATION (“VEARA”) IS A MEMBER OF NFA AND IS SUBJECT TO NFA'S REGULATORY OVERSIGHT AND EXAMINATIONS. VEARA HAS ENGAGED OR MAY ENGAGE IN UNDERLYING OR SPOT VIRTUAL CURRENCY TRANSACTIONS IN A COMMODITY POOL. ALTHOUGH NFA HAS JURISDICTION OVER VEARA AND ITS COMMODITY POOL, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY FOR UNDERLYING OR SPOT MARKET VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS. YOU SHOULD ALSO BE AWARE THAT GIVEN CERTAIN MATERIAL CHARACTERISTICS OF THESE PRODUCTS, INCLUDING LACK OF A CENTRALIZED PRICING SOURCE AND THE OPAQUE NATURE OF THE VIRTUAL CURRENCY MARKET, THERE CURRENTLY IS NO SOUND OR ACCEPTABLE PRACTICE FOR NFA TO ADEQUATELY VERIFY THE OWNERSHIP AND CONTROL OF A VIRTUAL CURRENCY OR THE VALUATION ATTRIBUTED TO A VIRTUAL CURRENCY BY VEARA.