Hashdex, a leading digital asset management firm, has officially debuted its spot Bitcoin Exchange-Traded Fund (ETF) in the United States following the conversion of the Hashdex Bitcoin Futures ETF to the Hashdex Bitcoin ETF under the ticker “DEFI”, which started trading on Wednesday.
As per the official statement, the asset management firm has been allowed to provide spot Bitcoin holdings and track a new benchmark index called the Nasdaq Bitcoin Reference Price-Settlement (NQBTCS).
Hashdex Joins the BTC ETF Race
For the first time since March 18, the US spot BTC ETF market witnessed significant positive inflows worth $418 million, according to data from BitMEX Research. The ETFs reported outflows for five consecutive sessions until March 25, when the inflows were only $15.7 million.
Notably, Hashdex’s decision to join the race might bring additional inflow into the ETF space, bringing competition to BlackRock’s IBIT and Fidelity’s FBTC.
The announcement reads:
“Going forward and under normal market conditions, the Fund’s investment policy is to maximize its holdings of physical bitcoin such that it is expected that at least 95% of the Fund’s assets will be invested in spot bitcoin. Up to 5% of the Fund’s remaining assets may be invested in CME-traded bitcoin futures contracts and in cash and cash equivalents.”
Further, Hashdex will serve as the digital asset advisor for DEFI, while Tidal will serve as the spot Bitcoin ETF’s sponsor. Tidal ETF Services LLC is the fund’s administrator, while BitGo serves as its bitcoin custodian.
Hashdex Bitcoin ETF: Tracking the Price of Bitcoin
While the Hashdex Bitcoin Futures ETF was launched on the NYSE in 2022 “as the world’s first bitcoin futures ETF as a commodity pool registered under the Securities Act of 1933,” with the conversion to spot Bitcoin ETF, Hashdex aims to allow investors to track the price of bitcoin directly.
Samir Kerbage, CIO at Hashdex stated:
“We’re excited to invite all investors—whether it be those who already have full conviction in bitcoin, those who are considering an allocation for the first time, or anyone in between—to join us in our long-term journey of making digital assets accessible.”
Moreover, Marcelo Sampaio, the co-founder and CEO of Hashdex, noted that “Bitcoin is a generational opportunity,” adding:
“This conviction has driven our continued focus on helping investors understand this transformational asset and offering products that allow for regulated participation in the blockchain ecosystem.”
The Spot Bitcoin ETF Race
Eric Balchunas, a Bloomberg ETF analyst, said that if Hashdex imposes competitive fees, DEFI can perform well in the market despite being so late in the game.
Nate Geraci, the founder of ETF Store, stated in a post on X that he expected DEFI to be the first spot bitcoin ETF in the market. He noted that it is possible for DEFI to carve a path for itself in the spot Bitcoin ETF market dominated by the likes of BlackRock and Fidelity.
Balchunas replied to Geraci that the VanEck Bitcoin Trust ETF (HODL) already has half a billion in assets under management (AUM), which is a lot for a three-month old ETF. However, when it comes to the spot BTC ETF, this number “feels like no biggie.”
