The launch comes after Victory partnered with index provider Nasdaq and crypto investment firm Hashdex Index which the fund tracks and owns bitcoin and ethereum as well as others including chainlink, litecoin and filecoin.
Victory Capital has launched a private fund to provide qualified clients with access to digital assets and plans to expand the availability of the strategy by offering it as an ETF.
The Texas-based company, which manages around $ 160 billion in assets, has launched the Victory Hashdex Nasdaq Crypto Index Fund LLC, the company said on Wednesday. The fund management fee is 175 basis points.
The offer tracks the Nasdaq Crypto Index, which holds multiple coins – a differentiator from competing offerings, Dhillon noted. As of June 1, the index held bitcoin and ethereum at weights of around 62% and 32%, respectively, as well as smaller positions in litecoin, chainlink, bitcoin cash, uniswap, stellar lumens and filecoin.
“We have seen an evolution in crypto assets that continues, and we believe it is a viable asset class,” Mannik Dhillon, president of VictoryShares & Solutions, told Blockworks in an email. . “Our private fund offers accredited US investors the opportunity to gain broad exposure to crypto assets in a dynamic and adaptable manner at a relatively low cost and without blocking.”
The launch comes after Victory announced plans to enter the cryptocurrency market through a partnership with Nasdaq and Hashdex. The latter company, a Brazil-based asset manager founded in 2018, launched its own crypto ETF earlier this year using the same Nasdaq index. The product trades on the Bermuda Stock Exchange for accredited non-US investors.
Victory has filed an initial registration statement with the SEC to offer the strategy in an ETF vehicle, the company also revealed on Wednesday.
“We have always believed that if you are building an institutional quality product, you should try to bring it to as many investors as possible,” said Dhillon. “ETFs and their exchange-traded nature allow more investors to easily access investment strategies, further democratizing access to the asset class. “
ETFs that invest directly in crypto are currently awaiting approval from US regulators. SEC Chairman Gary Gensler said on Tuesday he was particularly eagerly awaiting the agency’s review of ETFs limited to bitcoin futures.
Dhillon noted that the dialogue around regulation and potential product approvals is excellent for investors.
Further consolidating the regulation of crypto products and the crypto asset class in general will be a huge and positive evolutionary step for the industry – with regulation comes increased convenience and generally more demand from more companies. ‘investors adopting an asset class or an investment,’ he added. “As for the timing, only the SEC really knows, but we hope they approach the subject objectively, methodically and with the attention and thoroughness it deserves.”
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