Hashdex ETF Shifts to Spot Bitcoin

Crypto asset manager Hashdex has made a strategic pivot in its Bitcoin Futures ETF, marking a significant shift towards direct Bitcoin holding—a move that aligns with the growing demand for cryptocurrency investments.

Renamed the Hashdex Bitcoin ETF and retaining its ticker DEFI on the NYSE Arca, this transition not only reflects an evolved investment strategy but also positions Hashdex at the forefront of the burgeoning spot Bitcoin ETF segment in the United States.

Launched in September 2022, the DEFI ETF initially focused on Bitcoin futures contracts. However, with the latest strategy overhaul, the fund will now allocate at least 95% of its assets to spot Bitcoin. This decisive shift towards direct cryptocurrency holdings underscores Hashdex’s confidence in Bitcoin’s enduring value and its commitment to providing investors with more direct exposure to the cryptocurrency’s performance.

The remaining assets of the DEFI ETF may be invested in Bitcoin futures contracts on the Chicago Mercantile Exchange (CME), along with cash or cash equivalents. This hybrid approach allows for flexibility in investment strategies while focusing predominantly on spot Bitcoin.

The transition comes after the U.S. Securities and Exchange Commission (SEC) approved the launch of 10 spot Bitcoin ETFs, a development eagerly anticipated by industry watchers. Hashdex, with its rich experience in managing spot Bitcoin ETFs globally, was expected to be among the first to adapt to this new regulatory environment.

Despite initial delays in receiving SEC clearance for the fund’s name and strategy change, Hashdex’s ETF has now officially joined the league of spot Bitcoin ETFs. This category has witnessed remarkable growth, with net inflows of $11.7 billion since its inception, according to BitMEX Research.

The introduction of spot Bitcoin ETFs and the positive net flows they have attracted underscore a significant interest in cryptocurrency investments. With Bitcoin reaching a new all-time high above $73,000 earlier this month, the Hashdex Bitcoin ETF’s transition to spot Bitcoin holdings is timely and positions the fund to capitalize on the cryptocurrency’s upward trajectory.

Hashdex’s strategic pivot to spot Bitcoin holdings in its ETF represents a notable development in the cryptocurrency investment landscape. By aligning its investment strategy with direct Bitcoin exposure, Hashdex is not only responding to investor demand but also setting a precedent for future cryptocurrency ETFs.

As the crypto asset manager continues to navigate the evolving regulatory and market dynamics, its spot Bitcoin ETF is poised to offer investors a novel and potentially lucrative avenue for Bitcoin investment.