Crypto investment specialist Hashdex introduced the first bitcoin futures ETF in the United States registered solely under the Securities Act of 1933.
The Hashdex Bitcoin Futures ETF (US DEFI) was listed on NYSE Arca with an expense ratio of 0.94%.
The fund was developed in partnership with Teucrium Tradespecialist in commodity funds Loi 33, as well as Victory capital managementa global asset manager with $160 billion in assets under management.
The ETF follows US Bitcoin Futures Fund Hashdex Index which refers to the average first-month and second-month bitcoin futures prices traded on the Chicago Mercantile Exchange.
DEFI debuted almost a year after ProShares launched the first U.S.-listed bitcoin futures ETF in October 2021. ProShares Bitcoin Strategy ETF (BITO US) received a warm reception from investors, rapidly growing its assets under management to over $1 billion just days after commencing operations. Following the dramatic drop in crypto asset prices in 2022, BITO currently houses approximately $600 million in assets.
BITO, along with all subsequent bitcoin futures ETFs before DEFI, were structured under the Investment Companies Act 1940.
DEFI’s registration under Bill ’33 is significant as it potentially indicates that the United States Securities and Exchange Commission has moved closer to clearing the first directly-backed cash bitcoin ETF, which would likely also be approved. under law ’33.
Funds structured under Bill ’33 also contain different taxation rules than their Bill ’40 counterparts, allowing some investors to obtain advantageous tax treatments through DEFI.
Additionally, ETFs structured under Act ’40 are required to use an offshore subsidiary to gain exposure to bitcoin futures. This offshore subsidiary can only represent a maximum of 25% of a fund’s assets, meaning that Bitcoin Act ’40 futures ETFs must use leverage to gain the desired degree of exposure. According to Hashdex, because DEFI is able to invest directly in bitcoin futures, it benefits from better capital efficiency that will help the fund maintain a value closer to bitcoin.
Commenting on the launch of DEFI, Marcelo Sampaio, co-founder and CEO of Hashdex, said: “The launch of the Hashdex Bitcoin Futures ETF illustrates Hashdex’s continued commitment to providing investors with innovative and regulated products and services that allow you to be exposed to digital. asset class. This marks an important milestone for our business as we continue to introduce additional products and services – both in the United States and globally – that help meet the specific needs of all types of individual and institutional investors. .
Bruno Sousa, US Head of Hashdex, added, “At Hashdex, we have an unwavering dedication to constantly finding innovative ways to create products that provide options for investors to gain crypto exposure – our latest product, DEFI , does exactly that by honoring bitcoin. as what we believe to be the foundation of the decentralized finance revolution. We are delighted to partner with best-in-class providers, Teucrium and Victory Capital, to introduce this one-of-a-kind investment vehicle.