New ETF NCIQ Offers U.S. Investors Direct Access to Bitcoin and Ether

In a groundbreaking move for cryptocurrency investors, Hashdex, a global asset manager specializing in crypto investments, has partnered with Nasdaq Global Indexes to introduce the Hashdex Nasdaq Crypto Index US ETF. Trading under the ticker symbol NCIQ on the Nasdaq Stock Market, this exchange-traded fund (ETF) offers U.S. investors direct exposure to both Bitcoin (BTC) and Ether (ETH) within a single, tradable product.

A New Era for Crypto Investment

Historically, U.S. investors seeking exposure to cryptocurrencies faced challenges, often resorting to purchasing individual coins directly or investing in single-asset vehicles. The launch of NCIQ addresses these challenges by providing a diversified investment option that encompasses the two leading cryptocurrencies by market capitalization.

Marcelo Sampaio, Co-Founder and CEO of Hashdex, emphasized the significance of this development: “Since our founding, Hashdex has held the belief that a basket of crypto assets offers multiple benefits and is a great way for many investors to participate in the crypto ecosystem. Until today, U.S. investors have been forced to either purchase coins directly or invest in single-asset vehicles.” He added, “Now, with the launch of NCIQ, we are proud to deliver a familiar and readily tradable U.S.-based product that provides seamless exposure to Bitcoin and Ether.”

Understanding the NCIQ ETF

The Hashdex Nasdaq Crypto Index US ETF is designed to track the Nasdaq Crypto US Index (NCIUS), a benchmark co-developed by Nasdaq Global Indexes and Hashdex. This index measures the performance of a significant portion of the overall crypto market by adhering to strict criteria, including liquidity, market capitalization, and regulatory compliance. Currently, only Bitcoin and Ether meet these criteria for inclusion in the NCIUS.

One of the notable features of NCIQ is its cost structure. The management fee is set at 0.25% per annum of the daily net asset value (NAV) through the end of 2025, increasing to 0.50% thereafter. This competitive fee structure makes NCIQ an attractive option for investors seeking cost-effective exposure to the crypto market.

The Significance of Multi-Asset Exposure

By offering exposure to both Bitcoin and Ether, NCIQ provides investors with a balanced approach to crypto investment. Bitcoin, often referred to as digital gold, serves as a store of value, while Ether, the native cryptocurrency of the Ethereum network, powers a wide range of decentralized applications and smart contracts. Together, these assets represent a substantial portion of the crypto market, with a combined market capitalization exceeding $2.3 trillion.

Samir Kerbage, Chief Investment Officer at Hashdex, highlighted the benefits of this diversified approach: “With interest in crypto asset ETFs continuing to grow, reaching over $120 billion in U.S. AUM alone, we believe that what investors really need is an easy, passive way to invest in a product that is constantly evolving to capture the latest trends in the broader crypto market.” He further noted, “As the crypto market continues to develop, we expect there to be ongoing volatility with newer coins that disrupt the market share of Bitcoin, Ether, and other dominant assets, and we expect index-based products will enable wealth managers and investors to benefit from the growth of the rapidly changing sector without needing to be actively managing single asset crypto exposure.”

Nasdaq’s Role in Advancing Crypto Investment

Nasdaq Global Indexes has been instrumental in developing standardized benchmarks for the evolving crypto landscape. Cameron Lilja, Vice President and Global Head of Index Product and Operations at Nasdaq Global Indexes, stated, “Nasdaq Global Indexes and Hashdex share a mission of advancing crypto asset indexes and financial vehicles to meet the ever-growing demand from investors looking for access to the rapidly evolving crypto sector.” He added, “Nasdaq Crypto Indexes offer a standardized approach to capturing the performance of a material portion of the overall crypto asset market, serving as a guidepost in the dynamic crypto asset landscape.”

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A Track Record of Innovation

Hashdex has a history of pioneering crypto investment products. In 2021, the firm introduced the world’s first crypto ETF, enabling over 350,000 investors to seamlessly incorporate crypto assets into their portfolios. Since its inception in 2018, Hashdex has established itself as a global leader in crypto index ETFs, facilitating the mainstream adoption of digital assets across eight countries.

Implications for U.S. Investors

The introduction of NCIQ marks a significant milestone for U.S. investors, providing a regulated and accessible avenue to gain exposure to the crypto market’s leading assets. This development is particularly timely, given the increasing interest in diversified crypto investment options and the growing acceptance of digital assets within traditional financial markets.

By offering a product that combines the strengths of Bitcoin and Ether, Hashdex and Nasdaq are addressing the evolving needs of investors seeking diversified exposure to the crypto ecosystem. As the regulatory environment continues to mature, products like NCIQ are poised to play a crucial role in bridging the gap between traditional finance and the burgeoning world of digital assets.

Looking Ahead

The launch of the Hashdex Nasdaq Crypto Index US ETF sets a precedent for future multi-asset crypto investment products in the U.S. market. As the crypto industry continues to evolve, investors can anticipate the introduction of more diversified and innovative financial products that cater to a wide range of investment strategies and risk appetites.

In conclusion, the collaboration between Hashdex and Nasdaq signifies a pivotal advancement in the accessibility and maturation of crypto investments for U.S. investors. With the introduction of NCIQ, a new standard is set for diversified, regulated, and cost-effective exposure to the leading assets in the digital currency landscape.