Understanding the VanEck Onchain Economy ETF: Strategy and Performance

By Patricia Miller

2 min read

The VanEck Onchain Economy ETF strategically increases holdings during market dips, focusing on long-term trends in crypto and AI infrastructure.

#How Does the VanEck Onchain Economy ETF Operate?

The VanEck Onchain Economy ETF, known under the ticker NODE, has made a strategic decision to bolster its holdings after experiencing some losses, benefiting from a structure that does not utilize leverage. This choice is particularly significant given the recent failures of many leveraged crypto products in the market.

Launched in May 2025, NODE represents VanEck’s vision for the “onchain economy.” This encompasses a variety of sectors, including blockchain infrastructure, digital assets, cryptocurrency mining, and artificial intelligence compute services. As an actively managed fund, a dedicated team—not a mere index algorithm—determines when to adjust the portfolio.

Currently, NODE maintains between 59 to 64 investments, with its largest holding being VanEck's own Bitcoin ETF, HODL, which constitutes approximately 10.5% of the overall assets. Recent months have seen increases in investments in crypto mining and AI infrastructure companies, with firms like TeraWulf, Cipher Mining, HUT 8, and Applied Digital gaining prominence in the fund.

With around $65 million in assets, NODE has a relatively low expense ratio of 0.67%, providing a cost-effective solution for those looking to engage in this volatile sector.

#What Strategy Does NODE Employ for Market Dips?

NODE’s approach entails leveraging market pullbacks to accumulate more assets rather than retreating from the market in fear. Both April and May 2026 witnessed significant downturns, with declines of 5.3% and 8.3%, respectively. During these instances, NODE used the dips as strategic buying opportunities.

The absence of leverage means the fund avoids the pressure of margin calls that could force liquidation at unfavorable times. Thus, when facing a drop in value, the managers can deliberate on increasing their stakes rather than scrambling for extra collateral.

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#What Are NODE's Performance Metrics?

As of late July 2026, NODE has reported a year-to-date return of approximately 12.39%, buoyed by a remarkable 24.8% return just in April. This positive trend indicates that their tactical dip-buying strategy has effectively positioned the fund for recovery.

Over the last year, the fund's net asset value fluctuated between $29.73 and $54.32 per unit, showcasing the potential volatility of its portfolio.

#Why Is NODE Attractive to Retail Investors?

For retail investors, NODE provides an efficient way to access a diversified range of investments in the crypto-adjacent sector without the need to independently evaluate numerous companies. The 0.67% expense ratio stands as a competitive fee for professional management, especially in a complex investment domain where identifying successful companies is challenging.

Despite the extensive portfolio, NODE’s focus remains tightly aligned with a singular macro theme. The notable difference between its 52-week low and high underscores the portfolio's potential for significant movements. The current increase in investments in firms like Applied Digital and HUT 8 signals that VanEck is betting on the continuing integration of Bitcoin mining and AI infrastructure—trends that could yield favorable returns for investors in the long run. If these strategic bets pan out, NODE's current asset management of $65 million could soon represent just the beginning of much larger growth.

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Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.