VanEck's NODE ETF lost 13.5% in July, a sharp monthly drop driven by a broad selloff in AI-infrastructure stocks. The decline came during a month when the crypto market itself posted gains, leaving the fund out of step with the asset class it's designed to track.
The July slide
The exchange-traded fund, which holds companies tied to AI infrastructure and digital asset technology, took a beating last month. Investors dumped shares of firms that have ridden the AI wave for the past year, and NODE was caught in the downdraft. The 13.5% decline marks the fund's worst monthly performance in 2026.
The selloff wasn't limited to one subsector. It hit a range of names that had become crowded trades, and the ETF's concentrated focus meant it had nowhere to hide.
Divergence from crypto
What makes the drop notable is the timing. Bitcoin and other major cryptocurrencies rose through July, with the broader digital asset market climbing roughly 8% over the same stretch. NODE, despite its crypto-linked mandate, moved in the opposite direction.
The fund's holdings are heavy on companies that build and run AI data centers, chip makers, and energy infrastructure — businesses that have little direct exposure to token prices. So while crypto traders celebrated, NODE investors watched their positions bleed.
What the selloff says
The July slide suggests the AI-infrastructure trade has lost momentum. After a strong first half, investors started questioning valuations and future demand. NODE, which launched to capture the intersection of AI and crypto, ended up feeling more like a tech fund than a crypto fund.
That's not a new criticism. But the month's numbers make it harder to brush aside. When crypto rises and the ETF falls, the fund's raison d'être gets muddier.
August and beyond
NODE enters August with the AI trade still under pressure. There's no sign the selloff has run its course, and the fund's next monthly report will show whether July was a blip or the start of a longer correction.
For now, the ETF sits as a reminder that not everything with a crypto label moves in sync with bitcoin.
