Key Takeaways:
- Hashdex transforms its futures ETF into a spot Bitcoin ETF, named the Hashdex Bitcoin ETF (DEFI), allocating at least 95% of its assets to spot Bitcoin.
- DEFI marks Hashdex’s entry into the U.S. spot Bitcoin ETF market, employing a unique acquisition strategy for spot Bitcoin directly from physical exchanges within the CME market.
- Despite the late entry, Hashdex aims to capture market share in a sector where $25.5 billion has flowed into spot Bitcoin ETFs, with BlackRock and Fidelity currently dominating 80% of the market.
Hashdex is poised to become the eleventh contender in the highly competitive U.S. spot Bitcoin ETF arena, a field currently led by giants BlackRock and Fidelity.
After transforming its futures ETF into a vehicle for holding spot Bitcoin, asset manager Hashdex is set to make its mark in the United States’ spot Bitcoin exchange-traded fund (ETF) landscape.
JUST IN: 🇺🇸 Tidal and Hashdex announce their spot #Bitcoin ETF is set to begin trading. pic.twitter.com/4QFh8L8deL
— Bitcoin Magazine (@BitcoinMagazine) March 26, 2024
The firm announced on March 26 that it had rebranded and modified its Hashdex Bitcoin Futures ETF to the Hashdex Bitcoin ETF, now trading under the symbol “DEFI.”
This rebranding signifies DEFI’s shift to a spot Bitcoin holding strategy and its alignment with a new benchmark index starting March 27, 2024.
The revamped fund will allocate at least 95% of its assets to spot Bitcoin, reserving the remainder for investments in CME-traded Bitcoin futures contracts and liquid assets.
Marcelo Sampaio, co-founder and CEO of Hashdex, expressed the company’s strong belief in Bitcoin as a “generational opportunity,” inviting investors of all levels of conviction to partake in their journey towards making digital assets widely accessible.
Samir Kerbage, the Chief Investment Officer at Hashdex, echoed this sentiment, underscoring the firm’s commitment to broadening investment avenues in digital assets.
Hashdex’s entry into the U.S. spot Bitcoin ETF market in August 2023 marked a notable deviation from the norm, as its fund procures spot Bitcoin directly from physical exchanges within the CME market, unlike others that rely on a surveillance-sharing agreement with Coinbase.
Despite joining the fray several months behind its competitors, Hashdex ventures into a market where cumulative inflows into spot Bitcoin ETFs, excluding Grayscale’s ETF, have reached nearly $25.5 billion, as per Farside Investors data.
Tidal and Hashdex Announce Trading of U.S. Spot Bitcoin ETFhttps://t.co/vFhGv7CdkY pic.twitter.com/LHrmrfCJ9a
— Hashdex (@hashdex) March 26, 2024
However, a significant portion of this, approximately 80%, is dominated by the offerings from BlackRock and Fidelity.
The fund’s prospectus reveals a management fee of 0.90% per annum, positioning it on the higher spectrum of ETF charges, which typically average around 0.30%, but still below the 1.5% annual fee levied by the Grayscale Bitcoin Trust (GBTC).
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