VanEck is making strategic changes to its gaming exchange-traded fund (ETF) in a bold move aimed at capitalizing on the emerging trends in digital finance and online platforms. Following a recent regulatory filing, the firm announced it will rebrand its existing gaming ETF, currently named the VanEck Gaming ETF (BJK), to the “VanEck Degen Economy ETF.” This rebranding reflects a shift toward embracing the term “Degen,” which has historically been used in a derogatory context within gambling and trading circles, and instead reinterpreting it as a marketing strategy for the growing sectors of digital finance and online betting.
The new name will take effect after market close on April 8. This transformation comes as the fund, which launched in 2008 and has managed to amass a modest $23 million in assets, seeks to redefine its investment focus. Alongside the new name, the ETF will also adopt an updated benchmark index and a broader investment mandate, which VanEck believes will allow it to capture the essence of what it terms the developing “Degen Economy.”
Historically, the original gaming ETF focused primarily on sectors like casinos, sports betting, and lottery services. However, the newly branded Degen ETF is broadening its scope significantly. The fund will now include companies that derive at least 50% of their revenue from both “Millennial Finance” and “Gig Economy and Online Forums.” The “Millennial Finance” segment targets digital brokerages, neobanks, cryptocurrency exchanges, and buy-now-pay-later (BNPL) providers. In contrast, the “Gig Economy and Online Forums” category encompasses ride-hailing services, delivery applications, freelance marketplaces, and community platforms.
This strategic pivot comes at a time when the VanEck Gaming ETF has only seen a modest increase of about 3% year-to-date, lagging significantly behind the performance of the S&P 500 index. As the financial landscape continues to evolve, VanEck’s decision to embrace the “Degen” label and integrate a more diverse array of investment options stands out as a notable attempt to not only stay relevant but also to appeal to a demographic that is increasingly engaged in high-risk, rapidly changing market environments.
