Hashdex, which claims to be the world’s largest asset manager for crypto-assets, launched and activated a new Web3 fund as an ETF on the Brazilian exchange B3 on March 30, 2022. Hashdex is thus expanding its ever-growing range of crypto-related forms of investment.
This ETF, dubbed WEB311, initially attracted 1,270 investors who deposited a total of 29.42 million Brazilian reals (BRL), or about $6.1 million.
With @Hashdexit is @CFBenchmarks-powered WEB311 slated to launch on March 30, BFC CEO Sui Chung explained how our CF Web 3.0 Smart Contract Platforms Market Cap Index captures “the future of the internet”…” integrated with the blockchain” – via @Quicktakehttps://t.co/cJqPxVaDUb pic.twitter.com/7HChLIdMuA
— CF Benchmarks (@CFBenchmarks) March 17, 2022
The Hashdex WEB311 ETF was launched in cooperation with crypto index specialist CF Benchmarks and is intended to chart CF Benchmarks’ so-called “CF Web 3.0 Smart Contracts Platforms Index”.
At launch, seven digital assets from the field of smart blockchain networks were included in the fund. These are the values and shares in the assets of the fund:
- Ethereum 22.5%,
- Gimbal 22.5%,
- Solana 22.1%,
- Peas 19.5%,
- Algorand 8.8%,
- Tezos 3.5%
- and finally Cosmos with the remaining 1.1%.
More Hashdex offers!
The now released WEB311 ETF is just one investment offering from Hashdex’s list of crypto-related offerings. Hashdex started with the HASH11 ETF in 2021, which tracks the “Nasdaq Crypto Index” (NCI).
This ETF currently has over 150,000 investors and over BRL 2.4 billion in assets, or over $50.3 million.
HASH11 – 30/03#hashdex #crypto #blockchain #bitcoin #ethereum pic.twitter.com/J6kRtz4cGo
– Hashdex (@hashdex) March 31, 2022
Hashdex’s portfolio of crypto assets also includes Bitcoin ETF (BITH11) with assets over BRL 294.6 million, Ethereum ETF (ETHE11) with assets over BRL 166.7 million and the new DeFi Index ETF (DEFI11).
The latter was only launched in February 2022 and has already accumulated assets of over BRL 60 million (about US$12.6 million). By comparison, QR Capital’s highly acclaimed DeFi ETF (QDFI11) has less than $9 million in assets under management.
ETF – What is it?
The term ETF stands for Exchange Traded Funds and is nothing more than the good old investment fund in which investors can invest and invest money relatively safely and easily.
Such an investment fund, or ETF, covers an investment class and not just a single stock. The fund description specifies the securities in which the investments are made and the weighting of the individual securities, ie the proportion of the individual investments in the total assets of the fund.
There are investment funds or ETFs that, for example, chart the DAX or only invest in renewable energy, or only in heavy industry, real estate or only in bond investments and government bonds Status and more.
With the establishment of cryptocurrencies in the financial market, these have also attracted the interest of asset managers and private equity firms, who have set up funds in which cryptocurrencies are charted or entire swathes of blockchain networks.
This allows investors to invest in crypto assets without the high risk of price fluctuations that can occur when buying individual cryptocurrencies.
Who or what is Hashdex?
Hashdex is an international asset manager with offices in Brazil, the United States and Switzerland. The company specializes in crypto-related investment offerings and is a pioneer in the industry. Hence, global market leadership could be achieved.
The company’s headquarters in Brazil and the listing of the funds on the Brazilian stock exchange were chosen because Brazil was and still is one of the few countries where such ETFs are allowed.
As of December 2021, Canada, as the only Western industrialized country, has also endorsed a crypto ETF, the BIT from asset manager Global Crypto Leaders. In the US and Europe, crypto ETFs are prohibited and will not be approved.
US asset manager Grayscale is threatening US financial regulator SEC with legal action if it continues to deny approval for its Bitcoin ETF.
Grayscale Bitcoin ETF Faces Litigation With SEC?
Conclusion on the new Hashdex ETF
While other fund managers have long argued over licensing procedures, Hashdex simply goes to the country and lists where these products are allowed. And because money and especially the crypto industry operate worldwide and without borders, no matter where and on which stock exchange the investment funds are offered.
I am sure that if crypto ETFs are approved in the US and Europe, Hashdex will quickly place corresponding offers there as well.
But until then, the Brazilian stock exchange will remain the “home” of this form of investment product. And the time competitors lose in disputes with financial regulators is being used by Hashdex to further expand its dominance in the global market.