Hashdex Asset Management Ltd. (“Hashdex”) and Tidal Investments LLC (“Tidal”) have announced the conversion and renaming of the Hashdex Bitcoin Futures ETF to the Hashdex Bitcoin ETF (“DEFI”) (Ticker NYSE Arca: DEFI, CUSIP: 88634V100), as per a press release dated March 26, 2024. This strategic move allows the Fund to hold primarily spot Bitcoin and track a new benchmark index, the Nasdaq Bitcoin Reference Price – Settlement (NQBTCS), effective March 27, 2024.
Under normal market conditions, the Fund’s investment policy is to allocate at least 95% of its assets to spot Bitcoin, with up to 5% of the remaining assets potentially invested in CME-traded Bitcoin futures contracts, cash, and cash equivalents. This allocation positions the Hashdex Bitcoin ETF as a primarily spot Bitcoin ETF, offering investors a more direct exposure to the price of Bitcoin through a regulated investment vehicle.
The press release outlines the distinct roles and responsibilities of Hashdex and Tidal in the management and operation of the Hashdex Bitcoin ETF. Hashdex serves as the digital asset advisor for DEFI, providing expertise and guidance on the Fund’s investment strategy and its exposure to bitcoin. With its background as a digital assets-focused firm running spot ETFs in multiple regions, Hashdex brings extensive experience to the table and plays a role in educating investors and advisors about Bitcoin.
Tidal acts as the sponsor of the Hashdex Bitcoin ETF, overseeing the Fund’s operations and ensuring compliance with relevant regulations. Tidal collaborated with Hashdex to custom-build an investor-friendly product, leveraging Tidal’s experience in the ETF industry and Hashdex’s expertise in digital assets.
The press release also mentions two other entities with specific roles. Tidal ETF Services LLC serves as the Fund’s Administrator, handling administrative tasks and operations, while BitGo acts as the Bitcoin Custodian for the Fund, ensuring the secure storage and management of the Fund’s bitcoin holdings.
Marcelo Sampaio, Co-Founder and CEO of Hashdex, expressed the firm’s strong belief in Bitcoin as a generational opportunity and emphasized Hashdex’s ongoing commitment to helping investors understand this transformational asset. Samir Kerbage, CIO at Hashdex, invited all investors to join the firm’s long-term journey of making digital assets accessible, highlighting Hashdex’s founding mission of educating investors and advisors.
Mike Venuto, CIO and Co-Founder of Tidal, explained the decision to partner with Hashdex, emphasizing the shared commitment to custom-building an investor-friendly product that offers benefits that may be unavailable when trading bitcoin directly in unregulated markets.
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