The logos of the cryptocurrencies Bitcoin (BTC), Ethereum (ETH), stablecoins Tether (USDT) and Binance Coin (BNB) can be seen on the trading platform CoinMarketCap.
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VanEck is betting that the term, which began as a code word for reckless online traders, can sell ETFs.
The company renamed its gaming ETF (BJK) the VanEck Degen Economy ETF, turning the once derogatory term into a marketing pitch promoting the boom in digital finance, gig platforms and online gambling, according to a regulatory filing.
The change will take effect after the market closes on April 8, and will reset the fund, which was established in 2008, to just $23 million in assets. In addition to the new name, the ETF will adopt a revamped benchmark index and a broader investment mandate aimed at capturing what VanEck calls the emerging “degen economy.”
“Degen,” short for “decadent,” originated in the gambling world and later permeated the crypto and retail trading communities as a tongue-in-cheek label for people who make risky and impulsive bets.
The original gaming ETF targeted casinos, sports betting, lottery services, and gaming players. The Degen ETF is now expanding to companies that derive at least 50% of their revenue from “millennial finance” and “gig economy and online forums.”
“Millennial Finance” includes digital brokerages, neobanks, crypto exchanges, BNPL or buy now, pay later providers. “Gig Economy and Online Forums” covers ride-hailing services, delivery apps, freelance marketplaces, and community platforms.
The VanEck Gaming ETF is up about 3% since the beginning of the year, significantly underperforming the S&P 500.
