NCIQ Overview

Launch of New Crypto ETFs: 21Shares has introduced two new crypto index ETFs, the 21Shares FTSE Crypto 10 Index ETF (TTOP) and the 21Shares FTSE Crypto 10 ex-BTC Index ETF (TXBC), which are the first crypto index products registered under the Investment Company Act of 1940.

Investment Strategy and Fees: TTOP includes Bitcoin and charges a 0.50% fee, while TXBC focuses on blockchain applications without Bitcoin and charges 0.65%. Both funds offer a regulated way for investors to access a diversified basket of digital assets.

Market Context and Expectations: The launch occurs in a challenging market environment, with Bitcoin's value dipping below $100,000. 21Shares anticipates a slower uptake for these multi-coin funds compared to Bitcoin-focused products.

Industry Competition: The introduction of these ETFs comes as asset managers are actively trying to launch spot altcoin ETFs, with only two existing multi-coin index ETFs under the '33 Act, highlighting the competitive landscape in the crypto investment space.

Expansion of Crypto ETP: Hashdex and Nasdaq Global Indexes have expanded the Hashdex Nasdaq Crypto Index US ETF (NCIQ), the first multi-asset spot crypto ETP in the U.S., to include Bitcoin, Ether, XRP, Solana, and Stellar, allowing U.S. investors to access these leading crypto assets through a single product.

Market Leadership and Innovation: Hashdex has established itself as a leader in crypto index products since 2018, having launched the world's first crypto index ETF and managing significant assets across various markets, while the NCIQ aims to simplify crypto investment for U.S. investors amidst evolving regulatory landscapes.