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Tidal and Hashdex’s DEFI Enters Spot Bitcoin ETF Market: Report

Published 27/03/2024, 08:06
© Reuters.  Tidal and Hashdex’s DEFI Enters Spot Bitcoin ETF Market: Report
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  • Tidal Investments and Hashdex Asset Management renamed their Hashdex Bitcoin Futures ETF to the Hashdex Bitcoin ETF (DEFI).
  • The renaming follows the successful completion of the investment strategy’s conversion to Bitcoin ETF.
  • 95% of the Funds’ assets are expected to be invested in spot Bitcoin as the Fund envisions maximizing physical BTC holdings.

Tidal Investments and Hashdex Asset Management recently renamed the Hashdex Bitcoin Futures ETF to the Hashdex Bitcoin ETF (DEFI), following the completion of the investment strategy’s conversion to the Bitcoin ETF.

While DEFI entered the ETF market, Eric Balchunas, the senior ETF analyst at Bloomberg, acknowledged it as the eleventh Spot Bitcoin ETF. The analyst added that DEFI’s entry into the market is promising, despite being a bit late.

The ETF manager and the asset manager together announced the trading of their spot Bitcoin exchange-traded fund (ETF) via a post on March 26. Marcelo Sampaio, co-founder and CEO of Hashdex, shared the company’s excitement about introducing their ETF to the market. He cited,

“Since our founding in 2018, Hashdex has strongly believed that bitcoin is a generational opportunity. This conviction has driven our continued focus on helping investors understand this transformational asset and offering products that allow for regulated participation in the blockchain ecosystem.”

According to the official post, the Fund’s investment policy focuses on maximizing physical Bitcoin holdings. Thus, at least 95% of the Fund’s assets would be invested in spot Bitcoin. The rest of the assets are expected to be invested in CME-traded bitcoin futures contracts and cash and cash equivalents.

Reportedly, the DEFI has been designed specifically to allow investors to track the BTC price. With its crucial relationship with the Chicago Mercantile Exchange (CME), DEFI transparently “acquires, disposes, and values its Bitcoin.”

Mike Venuto, CIO and co-founder of Tidal, acknowledged Hashdex’s commitment to the industry, which led Tidal to choose Hashdex as their partner. He added that the firm’s extensive experience would help build an investor-friendly product.

The post Tidal and Hashdex’s DEFI Enters Spot Bitcoin ETF Market: Report appeared first on Coin Edition.

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