Hashdex has officially joined the ranks of 10 other Spot Bitcoin ETFs in the United States, switching from a Futures ETF to a Spot ETF. This means Hashdex can now purchase Bitcoin directly.
ETF expert Erich Balchunas is positive about Hashdex’s ETF, provided the fund’s management costs remain competitively low.
Spot Bitcoin ETF that doesn’t put everything into Bitcoin?
The special thing about the Hashdex ETF is that not all of the fund’s capital ends up in spot Bitcoin. They also continue to hold Bitcoin futures contracts, cash and cash-like instruments. 95 percent goes to spot Bitcoin, while the remaining 5 percent goes to the aforementioned instruments.
“Since our founding in 2018, Hashdex has strongly believed that Bitcoin is the opportunity of a generation,” said Hashdex co-founder and CEO Marcelo Sampaio.
“We are excited to invite all investors. It does not matter whether these are people who are already completely convinced of Bitcoin, people who want to get involved for the first time or people who are somewhere in between. Everyone can join us on the long-term journey to make digital assets accessible,” said Hashdex leadership.
Hashdex, founded in 2018, joined the rest of the applicants for a US Spot Bitcoin ETF in August 2023. Unlike all other funds, which have a controlling agreement with Coinbase, Hashdex purchases its Bitcoin from physical exchanges within the CME market.
High management fee
Hashdex’s prospectus states that the fund wants to charge a management fee of 0.90 percent. The question remains whether this will contribute to the success of the fund. On average, the management fee for the Spot Bitcoin ETFs is 0.30 percent and for some issuers it is even lower than that.
The highest fee is in the hands of Graysacle, which takes 1.5 percent from its investors on an annual basis. That is of course also the reason why Grayscale’s fund loses a huge amount of Bitcoin every trading day to parties such as BlackRock and Fidelity.
Eric Balchunas still sees an opportunity for the Hashdex fund, which operates under the ticker $HODL, to get a piece of the Spot Bitcoin ETF pie.
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Source: https://newsbit.nl/nieuwe-spot-bitcoin-etf-van-hashdex-gaat-woensdag-de-beurs-op/
