Asset management firm Hashdex has officially entered the spot Bitcoin exchange-traded fund (ETF) market in the United States. The company announced on March 26 that it has renamed and converted its Hashdex Bitcoin Futures ETF to the Hashdex Bitcoin ETF, with the ticker symbol “DEFI”. This move allows the fund to hold spot Bitcoin and track a new benchmark index starting from March 27, 2024.
The newly converted fund will invest at least 95% of its assets into spot Bitcoin, with up to 5% of the remaining assets allocated to CME-traded Bitcoin futures contracts, as well as cash and cash equivalents. Hashdex believes that Bitcoin presents a significant opportunity and aims to make digital assets more accessible to investors.
Founded in 2018, Hashdex initially joined the race for an approved spot Bitcoin ETF in the US in August 2023. Unlike other funds that rely on a Coinbase surveillance sharing agreement, Hashdex’s fund acquires spot Bitcoin from physical exchanges within the CME market.
However, Hashdex is entering a competitive spot Bitcoin ETF market several months later than its competitors. According to data from Farside Investors, the cumulative inflow into spot Bitcoin ETFs, excluding Grayscale’s ETF, is currently nearly $25.5 billion, with BlackRock and Fidelity’s ETFs accounting for 80% of that figure.
Hashdex’s ETF charges a management fee of 0.90% per year, which is on the higher end compared to the average fee of around 0.30% charged by other ETF issuers. However, it is still lower than the 1.5% annual fee charged by the Grayscale Bitcoin Trust (GBTC).
As Hashdex enters the spot Bitcoin ETF market, investors should be cautious and aware of the risks associated with investing in Solana memecoins.