Hashdex, a global crypto-focused asset manager, has announced the launch of its Staking Program for all non-bitcoin funds and ETFs. This service will be available in The Cayman Islands, Brazil and Chile. Investors in eligible funds will benefit from staking awards to achieve higher returns, either through partial or full compensation of the management fee.
“Hashdex is committed to continually providing cutting-edge products that meet the high standards of global professional investors. Our new Staking Program further reinforces our unmatched ability to evolve in-line with the growing crypto ecosystem,” said Marcelo Sampaio, co-founder and CEO of Hashdex.
“Staking is a key benefit of select cryptocurrencies. It serves as passive income and enables institutional and retail investors to benefit from valuable staking rewards. All the while, it supports the security of the underlying blockchains.
“Through our program, investors will enjoy the benefits of staking through Hashdex’s professional, trusted and regulated products. All without the need for specialised expertise or the use of complicated platforms,” concluded Sampaio.
Offering higher returns
Hashdex’s products and services, including the firm’s latest staking program, allow investors pathways to fully participate in the crypto ecosystem. In addition to benefiting from the potential price appreciation of crypto assets, Hashdex’s Staking Program provides investors with the ability to earn additional yield on their tokens as staking rewards and mitigates the impact of token dilution.
All the while, this contributes to network security. The Program will automatically be incorporated into the firm’s funds and ETFs in the Cayman Islands, Brazil and Chile. This is with the exception of bitcoin-only products. This in turn enables Hashdex to offer higher net returns on its products, as the staking rewards will offset the impact of costs and, depending on the product, either lower the management fee, reduce the tracking error or generate outperformance.
“The ever-growing interest and adoption across crypto assets, especially as a result of challenges within the banking sector, reiterates investors’ enthusiasm for this important sector,” said Bruno Caratori, co-founder and COO of Hashdex. “Staking provides numerous benefits to the blockchain ecosystem that span from helping to secure the blockchain network, to facilitating governance, to improving efficiencies, and to regulating the supply and demand of tokens.
“As pioneers of this new approach to transparently allow investors to benefit from staking rewards, we are thrilled to set a new standard. Any ETF issuer with proof of stake crypto assets should return the value of the staking rewards to clients, even when the ETF is not a staked ETF.”
Ensuring survival
To carry out the Staking Program, Hashdex has carefully selected providers with an excellent track record and risk controls. Those that minimise the possibility of any losses during the staking process. All selected providers offer insurance against loss for operational errors or misbehavior.
Moreover, to ensure sufficient liquidity for redemption or other needs, Hashdex always keeps a portion of each crypto asset unstaked. Staked crypto assets are held by the same qualified custodians that hold the firm’s unstaked assets, including Coinbase Custody and Bitgo.
Hashdex’s ongoing mission is to provide investors around the world with the opportunity to participate in the crypto ecosystem. Allowing them to do so through innovative products and services. The firm is reviewing additional regions in which to expand its Staking Program.
Nasdaq developed, in partnership with Hashdex, the Nasdaq Crypto Index. This benchmarks the institutionally investable crypto market. Additionally, it lists the world’s first crypto ETF, the Hashdex Nasdaq Crypto Index ETF, on the Bermuda Stock Exchange. Hashdex currently has more than 225,000 investors globally in its products.
