Asset manager Hashdex will launch The Hashdex Nasdaq Crypto Index US ETF (exchange-traded fund) on Feb. 14, Nasdaq announced. Qualified U.S. investors will have broad, balanced exposure to the crypto market through the instrument. It is the first approved of several applicants for similar ETFs.
The Nasdaq Crypto Index follows nine cryptocurrencies that are weighted according to their market capitalizations. The index represents 75% of the market capitalization of all eligible assets and would add more cryptocurrencies to maintain that level, if necessary. A minimum investment of $100,000 is required.
The ETF will have a limited start
The ETF (ticker NCIQ) will initially only contain Bitcoin and Ether and will expand the mixture as the U.S. Securities and Exchange Commission (SEC) approves more cryptos for listing. BTC and ETH currently make up 74.81% and 11.51% of the index, respectively. The index is passively managed and rebalanced quarterly.
Besides BTC and ETH, the other cryptocurrencies currently on the index, in proportional order, are Ripple (XRP), Solana (SOL), Cardano (ADA), Chainlink (LINK), Litecoin (LTC), Avalanche (AVAX) and Uniswap (UNI).
NCIQ was listed at $4,827.98 per share at the time of writing, down 1.37% from the previous day.
A mixed-crypto ETF is a popular product
Brazil-based Hashdex and Nasdaq collaborated on the creation of the index in 2021, and similar products with the full spectrum of listed cryptos are available in several countries.
The Hashdex Nasdaq Crypto Index Europe ETP has amassed over $500 million. The exchange-traded product (ETP) is traded on the Swiss SIX exchange, Deutsche Börse Xetra, Euronext Paris, and Euronext Amsterdam. The Brazilian Stock Exchange B3 lists a Hashdex Nasdaq Crypto Index ETP. It is listed in Bermuda and the Cayman Islands as well.
Nasdaq filed a 19b-4 form with the SEC requesting the listing of NCIQ in June. It filed an S-1, the final form for the launch of a financial product, in July. The SEC delayed a decision on the proposed ETF, and Nasdaq filed an amended S-1 form on Oct. 1.
NYSE Arca filed to convert Bitwise’s 10 Crypto Index Fund into an ETF on Nov. 15. The SEC delayed a decision on that application as well. Its new deadline is March 3. NYSE Arca also filed for the Grayscale Grayscale Digital Large Cap Fund on Oct. 29. That fund’s portfolio would contain SOL, AVAX, and XRP in addition to BTC and ETH. A decision on that ETF is expected in March as well.
