Hashdex Enters Competitive U.S. Spot Bitcoin ETF Market

1. Hashdex converts its Bitcoin Futures ETF to the Hashdex Bitcoin ETF, focusing on spot Bitcoin holdings.
2. DEFI, the newly converted ETF, allocates at least 95% of assets to spot Bitcoin, showcasing Hashdex’s commitment to digital assets.
3. Hashdex aims to compete with industry giants, offering an alternative approach to acquiring spot Bitcoin within the CME market.

Asset management firm Hashdex has officially joined the competitive landscape of spot Bitcoin exchange-traded funds (ETFs) in the United States. Firstly, marking its entry into a market dominated by industry giants like BlackRock and Fidelity.

Conversion to Spot Bitcoin ETF: DEFI Takes Center Stage

Hashdex announced the completion of the conversion of its Hashdex Bitcoin Futures ETF into the Hashdex Bitcoin ETF, bearing the ticker symbol “DEFI.” This strategic move aligns with DEFI’s transition to holding spot Bitcoin, effective March 27, 2024, and tracking a new benchmark index.

The newly converted fund, DEFI, is set to allocate at least 95% of its assets into spot Bitcoin. This is showcasing Hashdex’s commitment to the digital asset. Additionally, up to 5% of remaining assets will be invested in CME-traded Bitcoin futures contracts and cash equivalents.

Hashdex co-founder and CEO, Marcelo Sampaio, emphasized the belief in Bitcoin as a generational opportunity. Moreover, underlining the company’s long-term vision for making digital assets accessible to investors.

“Since our founding in 2018, Hashdex has strongly believed that Bitcoin is a generational opportunity,”

Marcelo Sampaio

Hashdex’s Chief Investment Officer, Samir Kerbage, extended an invitation to investors at all levels of conviction in Bitcoin. It is encouraging participation in the long-term journey of digital asset accessibility.

“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,”

Samir Kerbage

This inclusive approach reflects Hashdex’s mission to cater to a diverse range of investors, from seasoned Bitcoin enthusiasts to those considering their first allocation.

Late Arrival to a Competitive Market

While Hashdex’s entry into the U.S. spot Bitcoin ETF market is significant. It arrives several months after the emergence of other competitors. Data from Farside Investors indicates a cumulative inflow of nearly $25.5 billion into spot Bitcoin ETFs, with prominent players like BlackRock and Fidelity dominating the space.

Despite joining the race later, Hashdex’s unique approach, which involves acquiring spot Bitcoin from physical exchanges within the CME market, sets it apart from competitors relying on Coinbase surveillance sharing agreements.

Fee Structure and Competitiveness

Hashdex’s ETF charges a management fee of 0.90% per year, positioning it at the higher end of fee structures compared to the industry average of around 0.30%. However, it remains competitive against the Grayscale Bitcoin Trust (GBTC), which charges a higher annual fee of 1.5%.

As Hashdex navigates the competitive landscape of spot Bitcoin ETFs in the U.S., investors will closely monitor its performance and market positioning amid growing interest and demand for cryptocurrency investment products.