March 28, 2024

New Spot Bitcoin ETF Emerges as Hashdex Bitcoin Fund Shifts Strategy

Hashdex and Tidal Investments' BTC futures fund gains regulatory approval to invest directly in bitcoin, marking a significant shift in investment strategy.

In a move reflecting the burgeoning demand for direct exposure to bitcoin, Hashdex's bitcoin futures fund has pivoted to directly hold BTC. This development underscores the growing interest in crypto assets, particularly within the realm of exchange-traded funds (ETFs).

Originally launched as the Hashdex Bitcoin Futures ETF (DEFI) in September 2022, the fund has now rebranded as the Hashdex Bitcoin ETF while retaining its ticker on NYSE Arca. The strategic shift, effective as of Wednesday, entails investing a minimum of 95% of assets directly into spot bitcoin, with the remaining portion allocated to bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME), alongside cash equivalents.

As the crypto advisor to the fund, Hashdex collaborates with Tidal Investments, the sponsor of DEFI. This transformation follows the recent clearance by the Securities and Exchange Commission (SEC) for multiple spot bitcoin ETFs to launch in the US.

Anticipation surrounded Hashdex's move to transition its futures fund into a spot bitcoin ETF alongside a group of similar products in January. Hashdex's Chief Investment Officer, Samir Kerbage, expressed the company's readiness to offer investors exposure to spot bitcoin pricing, drawing on its extensive experience in managing spot bitcoin ETFs in other regions.

Despite initial expectations, the conversion awaited SEC clearance, delaying the formalization of DEFI's new investment strategy and name change. While the SEC approved proposals to list 11 spot bitcoin ETFs, including Hashdex's, procedural hurdles postponed the implementation of the fund's transformation.

The Hashdex Bitcoin ETF evolution aligns with a thriving category, which has witnessed significant net inflows totaling $11.7 billion since inception. After a record streak of net outflows, the segment recently rebounded with positive net flows, indicating sustained investor interest.

This strategic shift not only underscores Hashdex's commitment to meeting investor demand but also reflects the evolving landscape of cryptocurrency investment vehicles in the US market.

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