Hashdex Nasdaq Crypto Index ETF: Diversified Exposure to the Future of Digital Assets
As the global financial landscape evolves, digital assets are increasingly becoming a core component of modern investment strategies. At the forefront of this transformation is the Hashdex Nasdaq Crypto Index ETF, a regulated, exchange-traded fund offering institutional investors diversified exposure to the most liquid and influential crypto assets in the market.
Traded under the ticker HDEX.BH on the Bermuda Stock Exchange, this ETF is designed for the new era of investing—where transparency, security, and performance converge.
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What Is the Hashdex Nasdaq Crypto Index ETF?
The Hashdex Nasdaq Crypto Index ETF is a physically backed exchange-traded fund that seeks to replicate the performance of the Nasdaq Crypto Index™ (NCI™) before taxes and expenses. This index was co-developed by Hashdex and Nasdaq to serve as a dynamic benchmark for the cryptocurrency market, combining rigorous methodology with real-world applicability.
By tracking a basket of large-cap, highly liquid crypto assets, the ETF offers investors a regulated and secure way to gain broad exposure to digital currencies without the operational complexities of direct ownership.
How It Works: Full Physical Backing & Secure Custody
Unlike synthetic or futures-based products, the Hashdex Nasdaq Crypto Index ETF is fully backed by physical crypto assets included in the NCI™ basket. This means every share issued by the fund corresponds directly to actual holdings of digital assets—ensuring transparency and minimizing counterparty risk.
To safeguard these assets, the fund employs leading institutional custodians:
- Coinbase
- BitGo
- Zodia
These platforms provide enterprise-grade security, cold storage solutions, and insurance coverage—critical features for institutional-grade asset protection.
Additionally, the fund benefits from staking mechanisms, where applicable, enhancing yield potential over time through network participation rewards.
Investment Objective and Strategy
The primary goal of the Hashdex Nasdaq Crypto Index ETF is to deliver returns that closely match those of the Nasdaq Crypto Index™, which uses a market-cap-weighted methodology to select and allocate across top-tier cryptocurrencies.
Key Features:
- Diversified exposure: Reduces concentration risk by including multiple major digital assets.
- Regulated access: Listed on the Bermuda Stock Exchange, providing compliance with international standards.
- Transparent pricing: Daily NAV (Net Asset Value) calculations based on real-time market data.
- Cost-efficient structure: Lower fees compared to active crypto funds or direct custody setups.
This makes it an ideal solution for institutional investors seeking scalable, auditable, and compliant entry into the digital asset class.
Who Should Invest?
The Hashdex Nasdaq Crypto Index ETF is exclusively available to institutional clients, including:
- Pension funds
- Endowments
- Family offices
- Asset managers
- Insurance companies
Due to its listing on a recognized exchange and adherence to strict governance protocols, it fits seamlessly into traditional portfolio frameworks while offering exposure to high-growth digital assets.
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Performance Overview (As of July 1, 2025)
While past performance does not guarantee future results, historical data illustrates the ETF’s ability to track its underlying index effectively:
| Period | HDEX.BH Return | NCI™ Return |
|---|---|---|
| Month-to-Date | +1.68% | +1.81% |
| Previous Month | +13.02% | +13.15% |
| 6 Months | +3.90% | +4.66% |
| Year-to-Date | +5.09% | +5.85% |
| 12 Months | +51.64% | +53.91% |
| 24 Months | +181.72% | +189.25% |
Data as of July 1, 2025
Launched on February 2, 2021, the fund has demonstrated consistent alignment with the Nasdaq Crypto Index™ over multiple market cycles.
Assets Under Management (AUM)
As of June 30, 2025, the fund’s AUM stands at $763,017,701.76, reflecting growing confidence among institutional players.
Fund Structure & Key Details
Understanding the operational backbone of the ETF enhances investor trust and clarity.
Tax Treatment
The fund operates as a pass-through partnership for tax purposes. Investors receive K-1 tax forms, simplifying reporting requirements in jurisdictions that recognize this structure.
Share Classes & ISINs
The ETF offers two share classes:
- Class A Shares: ISIN KYG4404W1069
- Class E Shares: ISIN KYG4404X1043
Each class may differ in fee structure or distribution policies, catering to varied investor needs.
Fund Management & Oversight
- Asset Manager: Hashdex Asset Management Ltd.
- Fund Administrator: Catalyst Fund Administration LLC
- Custodians: Coinbase, BitGo, Zodia
This multi-party governance model ensures checks and balances across valuation, custody, and administration.
Why Choose This ETF?
In a market filled with volatility and uncertainty, the Hashdex Nasdaq Crypto Index ETF stands out for several reasons:
- Regulatory Compliance: Listed on a recognized exchange with full disclosure practices.
- Security First: Assets held with top-tier custodians using cold storage and insurance.
- Diversification: Exposure to multiple leading cryptocurrencies reduces single-asset risk.
- Transparency: Regular reporting, audited financials, and clear index methodology.
- Institutional Grade: Built specifically for professional investors requiring scalability and compliance.
Frequently Asked Questions (FAQ)
What is the Nasdaq Crypto Index™ (NCI™)?
The NCI™ is a rules-based index developed by Nasdaq and Hashdex to track the performance of large-cap, liquid cryptocurrencies. It uses transparent criteria for inclusion, rebalancing quarterly to reflect market changes.
How does staking enhance returns?
Staking allows the fund to earn rewards by participating in proof-of-stake networks (e.g., Ethereum). These yields are reinvested or distributed, boosting overall return potential without increasing risk exposure.
Is this ETF available to retail investors?
Currently, the Hashdex Nasdaq Crypto Index ETF is only available to institutional clients via the Bermuda Stock Exchange. Retail access may expand in the future depending on regulatory developments.
How often is the index rebalanced?
The Nasdaq Crypto Index™ is rebalanced quarterly, ensuring it remains representative of current market conditions and maintains diversification standards.
Can I track the fund’s daily performance?
Yes. The fund publishes its Net Asset Value (NAV) daily, allowing investors to monitor performance in real time through official channels and financial data providers.
What risks should I be aware of?
Key risks include crypto market volatility, regulatory changes, custody risks (despite strong safeguards), and liquidity constraints during extreme market events. Full details are available in official documentation.
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Final Thoughts
The Hashdex Nasdaq Crypto Index ETF represents a significant milestone in bringing digital assets into mainstream finance. By combining Nasdaq’s indexing expertise with Hashdex’s deep crypto knowledge, it delivers a reliable, secure, and transparent vehicle for institutions to participate in the growth of blockchain-based economies.
As adoption accelerates and regulatory clarity improves, products like HDEX.BH will play a crucial role in shaping the future of diversified investing.
Whether you're evaluating portfolio diversification, yield enhancement, or long-term strategic allocation, this ETF offers a compelling gateway into one of the most transformative asset classes of our time.
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