VanEck's new Wealth Builder ETF puts a small bitcoin slice alongside stocks, bonds and gold

Summary

VanEck launched the actively managed VanEck Wealth Builder ETF on the NYSE on Tuesday under the ticker WBMO, packaging its Wealth Builder model portfolios, previously offered to advisers through third-party platforms, into a single fund, Bitcoin Magazine and Cointelegraph reported.

The fund mixes global stocks, bonds, gold and other real assets with bitcoin exposure that comes through spot bitcoin exchange-traded products rather than holding bitcoin directly.

The outlets differ on the bitcoin weight: Cointelegraph said VanEck's website sets a 2% target with a permitted range of 1% to 5%, while Bitcoin Magazine said the prospectus sets no specific bitcoin target.

Bitcoin Magazine put the net expense ratio at 0.26% after a fee waiver, with the underlying bitcoin products charging their own fees.

Key facts

• WBMO's bitcoin exposure sits in a wholly owned Cayman Islands subsidiary that is generally capped at 25% of total assets at each quarter-end, a limit that covers several asset categories, Bitcoin Magazine reported. (Bitcoin Magazine)
• The gross expense ratio is 0.33%, and a 0.07% waiver brings the net ratio to 0.26%, per Bitcoin Magazine. (Bitcoin Magazine)
• "The traditional 60/40 portfolio was built for a different investment landscape," said David Schassler, VanEck's head of multi-asset solutions, as quoted by Cointelegraph. (Cointelegraph)
• VanEck warned that digital asset ETPs can be extremely volatile and that some are not registered under the Investment Company Act of 1940, Bitcoin Magazine said. (Bitcoin Magazine)
• VanEck managed about $244.1 billion as of Sept. 30, Cointelegraph reported. (Cointelegraph)

Related stories

• Bitcoin drops below $72,000 as spot ETFs bleed $1.44 billion in five days and BlackRock's IBIT loses $2 billion in nine
• Bitcoin treasury firm Nakamoto owes Kraken $165 million, more than its market value, as Q3 operating revenue turns negative
• Binance sets aside $6.34 billion to cover record hack as TRM and Chainalysis tie it to North Korea's TraderTraitor