Tidal Investments LLC and Hashdex Asset Management Ltd., two of the world’s top asset managers focusing on cryptocurrencies, announced today that the Hashdex Bitcoin Futures ETF will now be known as the Hashdex Bitcoin ETF. With effect from March 27, 2024, DEFI’s name reflects the completion of its investment strategy conversion, which permits the Fund to provide spot bitcoin holdings. It also tracks a new benchmark index.
The Nasdaq Bitcoin Reference Price – Settlement (NQBTCS) is the Fund’s new benchmark index, more accurately representing the Fund’s new direct bitcoin investment approach. The Fund’s investment goal is to optimize its physical bitcoin holdings going forward, assuming normal market conditions. This means that at least 95% of the Fund’s assets should be invested in spot bitcoin. Cash and cash equivalents and CME-traded bitcoin futures contracts may account for up to 5% of the Fund’s remaining assets.
Tidal is the organization that sponsors DEFI, while Hashdex acts as the advisor for digital assets. Tidal ETF Services LLC administers the Fund, while BitGo is in charge of holding its Bitcoins.
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The world’s first bitcoin futures exchange-traded fund (ETF) was introduced on the New York Stock Exchange (NYSE) in 2022 by Hashdex, a commodities pool registered under the Securities Act of 1933. With the completion of the Fund’s conversion to a spot bitcoin ETF, investors may now experience spot pricing through a well-known product.
With innovative features highlighting its important relationship with the Chicago Mercantile Exchange (“CME”), the Hashdex Bitcoin ETF was created with a technique to enable investors to track the Bitcoin price. Specifically, in contrast to other Bitcoin ETFs, the Fund uses CME futures exchange for physical transactions and CME-monitored pricing to purchase, dispose of, and value its Bitcoin openly and transparently.
The launch of the Spot Bitcoin ETFs, which removes many of the obstacles that have previously prevented widespread adoption, marks a significant advancement in the Bitcoin investment space. The U.S. Spot Bitcoin ETF gives investors direct exposure to physical Bitcoin holdings, unlike conventional Bitcoin ETFs that track Bitcoin futures contracts. This differentiation provides increased clarity, ease of use, and efficiency, allowing investors to take advantage of Bitcoin’s potential without dealing with the complications of futures-based products.
To launch the U.S. Spot Bitcoin ETF, Tidal and Hashdex used their institutional-grade infrastructure and industry knowledge. Investors now enjoy a seamless and safe trading experience thanks to Hashdex’s extensive understanding of cryptocurrency markets and Tidal’s cutting-edge trading platform. Tidal and Hashdex have ensured that the U.S. Spot Bitcoin ETF satisfies the highest standards of quality and dependability by abiding by strict regulatory standards and best practices, inspiring confidence in investors and institutions.
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The introduction of the U.S. Spot Bitcoin ETF signals a new age of accessibility, opportunity, and innovation in the Bitcoin investment scene. Tidal and Hashdex are preparing for the wider use of digital assets.
