VanEck launches Wealth Builder ETF with Bitcoin exposure and stocks bonds

The Wealth Builder ETF, which trades on the NYSE under the symbol WBMO, is a new offering from VanEck designed to offer investors a single, diversified holding encompassing stocks, bonds, gold, and Bitcoin.

This actively managed fund effectively packages the model portfolios that VanEck advisors have previously offered through external platforms into one readily accessible product that any individual with a brokerage account can purchase. VanEck, an institution that manages roughly $244 billion in assets, is responsible for selecting the assets, determining their respective weights, and periodically rebalancing the portfolio. The firm characterizes this product as a method to “gain exposure to a broad mix of investments across stocks, bonds, gold, and bitcoin with a single ETF purchase.”

It is important to note that the fund’s inclusion of Bitcoin exposure is indirect; WBMO itself does not actually hold any Bitcoin. Instead, a subsidiary wholly owned in the Cayman Islands manages certain investments, which then gain digital asset exposure through exchange-traded products that either track or hold Bitcoin. While this subsidiary is generally restricted to 25% of total assets at the close of each quarter, this ceiling applies across several different asset categories. The official prospectus does not stipulate a precise target for Bitcoin. Furthermore, investors holding this slice of Bitcoin do not require a personal wallet, a seed phrase, or an exchange account, nor do they possess the ability to directly manage their Bitcoin allocation.

The fund carries a gross expense ratio of 0.33%, which drops to 0.26% after a 0.07% fee waiver is applied, though the underlying Bitcoin products incur their own separate charges. The structure of the allocation also serves to temper volatility; should Bitcoin experience a rapid ascent, WBMO will only capture a fraction of those gains, and if it declines, the presence of bonds and gold is intended to mitigate some of the loss, even if it cannot prevent it entirely.

VanEck issued a caution within its announcement, alerting investors that digital asset ETPs can exhibit extreme volatility, and that some of these products are not registered under the Investment Company Act of 1940, meaning they lack certain protections afforded to investors. Separately, VanEck’s other crypto-linked fund, NODE, saw its Bitcoin ETP exposure increase from approximately 7% at the end of June to 16.8% by the end of September. Although NODE focuses on blockchain companies rather than the varied mix found in WBMO, it illustrates how VanEck is incorporating crypto into its investment strategies.

Addressing broader industry concerns, Matthew Sigel, VanEck’s Head of Digital Assets Research, previously commented that the Bitcoin community is aware of the dangers quantum computing poses to Bitcoin’s cryptography. Sigel stated at that time, “It’s a risk,” adding, “But the community has recognized the scope of the issue. There’s a lot of talent that’s now come together with a framework of how to upgrade the system…The upgrades don’t happen as fast because there’s no CEO who can tell the devs, ‘hey, do it now.’ There’s a governance process — it takes more time, it’s a little bit messier, but there are technological paths for quantum resistance, and I think you’ll see more of that over the next couple of years.” In preparation for these potential future threats, major corporations such as Coinbase and Blockstream have already started developing security measures that are resistant to quantum computing. Moreover, a Bitcoin Security Consortium, which includes entities like BlackRock, Fidelity Digital Assets, and Block, has been established to fund open-source security initiatives, including proposals such as BIP-360.

Why it matters

This launch brings a simple, diversified holding incorporating Bitcoin exposure to retail investors without requiring direct crypto custody. The structure allows investors to participate in digital assets through a traditional brokerage vehicle, which is a significant development in mainstream finance.