Hashdex, an asset manager, is set to enter the spot Bitcoin exchange-traded fund (ETF) market in the United States, having converted its futures ETF to hold spot Bitcoin.
In an announcement on March 26, Hashdex disclosed that its Hashdex Bitcoin Futures ETF has been renamed and converted into the Hashdex Bitcoin ETF, with the ticker “DEFI.”
“DEFI’s renaming corresponds to DEFI’s completion of the conversion of its investment strategy to allow the Fund to provide spot Bitcoin holdings and its tracking of a new benchmark index effective March 27, 2024,” it said.
$DEFI finally and officially makes it to the starting gate. Spot Bitcoin ETF #11. The getting is so good right now i could see this one getting some bites (if the fee is competitive) despite being so late. https://t.co/iEZL5fSiGT
— Eric Balchunas (@EricBalchunas) March 26, 2024
The newly converted fund will allocate at least 95% of its assets to spot Bitcoin, with up to 5% remaining for CME-traded Bitcoin futures contracts and cash and cash equivalents.
Marcelo Sampaio, co-founder and CEO of Hashdex, expressed the firm’s belief in Bitcoin as a generational opportunity since its inception in 2018.
Samir Kerbage, Hashdex’s chief investment officer, extended an invitation to investors of all backgrounds to participate in the journey of making digital assets accessible.
Hashdex initially entered the U.S. race for an approved spot Bitcoin ETF in August 2023. Unlike other ETFs relying on a Coinbase surveillance sharing agreement, Hashdex’s fund acquires spot Bitcoin from physical exchanges within the CME market.
Although Hashdex joins a competitive spot Bitcoin ETF market with some delay, data from Farside Investors shows cumulative inflows nearing $25.5 billion, with BlackRock and Fidelity ETFs contributing 80% of that figure.
According to a prospectus filed by Hashdex, its ETF charges a 0.90% annual management fee, positioning it toward the higher end compared to the industry average of around 0.30%, yet below the 1.5% fee charged by the Grayscale Bitcoin Trust (GBTC).