Builds on Hashdex’s History of Developing Innovative Offerings to Meet the Needs of Global Investors
New York / Rio de Janeiro / London, September 15, 2022 – Hashdex, an innovative leader in crypto asset management, today announced the launch of the Hashdex Bitcoin Futures ETF (ticker: DEFI), the world’s first Bitcoin Futures ETF (exchange-traded fund) registered solely under the Securities Act of 1933 (“’33 Act”). The Hashdex Bitcoin Futures ETF, developed with Teucrium Trading, LLC (“Teucrium”), a ’33 Act fund specialist focused on commodities funds; and Victory Capital Management Inc. (“Victory Capital”), a global asset manager with $159.1 billion in assets under management as of August 31, 2022, will be available on NYSE Arca under the ticker symbol “DEFI” beginning Friday, September 16.
“The launch of the Hashdex Bitcoin Futures ETF showcases Hashdex’s ongoing commitment to delivering investors with innovative and regulated products and services that allow them to gain exposure to the digital asset class,” said Marcelo Sampaio, Co-Founder & CEO of Hashdex. “Today’s news marks a significant milestone for our firm as we continue to introduce additional products and services - both in the U.S. and globally - that help meet the specific needs of all types of individual and institutional investors.”
Legacy of Market Leading Innovation
Hashdex is a leader in developing industry-first crypto offerings that enable global investors to participate in the crypto ecosystem. As part of its mission to reach more investors across the globe, the firm continues to expand globally, with offices in Brazil, the United States, and Europe.
In partnership with Nasdaq, Hashdex co-developed the Nasdaq Crypto Index™ (NCI™), which benchmarks the institutionally investable crypto market. The firm also partnered with Victory Capital to distribute crypto products in the U.S., including a private crypto fund for accredited investors.
Industry-First ’33 Act ETF
The Hashdex Bitcoin Futures ETF (DEFI) marks the firm’s first ETF registered with the U.S. Securities and Exchange Commission (“SEC”) and represents a major step in Hashdex’s ongoing commitment to providing investors access to the crypto space through the best possible product structures allowed by regulators. As the Digital Asset Advisor, Hashdex is responsible for providing the partners with research and analysis regarding bitcoin and bitcoin markets for use in the operation and marketing of DEFI.
“At Hashdex, we have an unwavering dedication to consistently find innovative ways of building products that provide investors with options to gain crypto exposure - our latest product, DEFI, does just that by honoring Bitcoin as what we believe is the foundation of the Decentralized Finance revolution,” said Bruno Sousa, Head of U.S. at Hashdex. “We are thrilled to join with best-in-class providers, Teucrium and Victory Capital, to introduce this first-of-its-kind investment vehicle. Furthermore, it has a different tax treatment than the '40 Act Bitcoin futures ETFs - the Prospectus details more information.”
“We are excited to continue working with Hashdex as part of our shared mission of delivering new solutions for a relatively new asset class to U.S. investors," said Mannik Dhillon, President of VictoryShares and Solutions for Victory Capital.
For more information, please visit https://hashdex-etfs.com/
The prospectus can be found at http://hashdex-etfs.com/public/prospectus.pdf
Hashdex is a global pioneer in crypto asset management. Hashdex invites innovative investors to join the emerging crypto economy. Hashdex’s mission is to provide educational resources and best-in-class products that advance its efforts to help build pathways by opening the crypto ecosystem to the world. The firm co-developed the Nasdaq Crypto Index™ (NCI™) with Nasdaq to provide global investors with a reliable benchmark for the crypto asset class. In 2021, Hashdex introduced the world’s first crypto ETFs and other innovative products, enabling over 260,000 investors to simply and securely add crypto to their portfolios. For more information visit www.hashdex.com or follow Hashdex on Twitter or LinkedIn.
About Victory Capital
Victory Capital is a diversified global asset management firm with $159.1 billion in assets under management as of August 31, 2022. The Company operates a next-generation business model combining boutique investment qualities with the benefits of a fully integrated, centralized operating and distribution platform.
Victory Capital provides specialized investment strategies to institutions, intermediaries, retirement platforms and individual investors. With 12 autonomous Investment Franchises and a Solutions Platform, Victory Capital offers a wide array of investment products, including mutual funds, ETFs, separately managed accounts, alternative investments, third-party ETF model strategies, collective investment trusts, private funds, and a 529 Education Savings Plan.
For more information, please visit www.vcm.com
Teucrium Trading LLC
Teucrium Trading is an ETF provider focused with a mission to empower investors with the knowledge and tools necessary to intelligently design well-diversified portfolios. Additionally, Teucrium provides Commodity Trading Sub-Advisor services for fund sponsors interested in partnering with an experienced team to help launch and/or manage ongoing fund operations. Teucrium’s suite of Exchange Traded Products has revolutionized the way commodity ETFs are structured; products are widely available to investors and advisors in traditional brokerage accounts.
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Certain information contained herein has been obtained from third-party sources and such information has not been independently verified by Hashdex, Teucrium and Victory Capital. No representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by Hashdex, Teucrium, Victory Capital or any other person. All information regarding the Fund strategy is based on information provided either in writing or verbally, and on both a formal and informal basis, from underlying Funds and/or other resources available to Hashdex, Teucrium and Victory Capital. Hashdex, Teucrium and Victory Capital have not necessarily made any attempt to verify all such information and do not guarantee the accuracy of any such information. None of the investments discussed in this document should be viewed as an investment recommendation and are provided for illustrative purposes only.
The Fund is a commodity pool that issues Shares that may be purchased and sold on NYSE Arca. The Fund’s investment objective is for changes in the Shares’ NAV to reflect the daily changes of the price of the Benchmark, less expenses from the Fund’s operations. Under normal market conditions, the Fund invests in Benchmark Component Futures Contracts and cash and cash equivalents. Because the Fund’s investment objective is to track the price of the Benchmark by investing in Benchmark Futures Contracts rather than bitcoin, changes in the price of the Shares will vary from changes in the spot price of bitcoin.
The Fund will invest in BTC Contracts and MBT Contracts to the extent necessary to achieve maximum exposure to the bitcoin futures market. Because the Fund’s investment objective is to track the price of the Benchmark by investing in Benchmark Futures Contracts rather than bitcoin, changes in the price of the Shares will vary from changes in the spot price of bitcoin.
The Fund employs Foreside Fund Services, LLC as the Distributor for the Fund. The Distribution Services Agreement among the Distributor, the Sponsor, and the Trust calls for the Distributor to work with the Custodian in connection with the receipt and processing of orders for Creation Baskets and Redemption Baskets and the review and approval of all Fund sales literature and advertising material. The Distributor’s principal business address is Three Canal Plaza, Suite 100, Portland, Maine 04101. The Distributor is a broker-dealer registered with the U.S. Securities and Exchange Commission (“SEC”) and a member of FINRA.
The Fund is a series of the Teucrium Commodity Trust (the “Trust”). The sponsor to the Fund is Teucrium Trading, LLC (the “Sponsor”), which receives a management fee. The Sponsor is registered as a commodity pool operator (“CPO”) and a commodity trading adviser (“CTA”) with the Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”). Hashdex Asset Management Ltd. (“Hashdex”) will serve as the Fund’s Digital Asset Adviser and will assist the Sponsor and Marketing Agents with research and investment analysis regarding bitcoin and bitcoin markets for use in the marketing of the Fund. Hashdex will also provide the Fund with marketing services including, but not limited to, branding, the issuance of press releases, preparation of website data content, holding promotional webinars and engaging in promotional activities through social media outlets.
Hashdex has no responsibility for the investment or management of the Fund’s investment portfolio or for the overall performance or operation of the Fund.
For more information pertaining to the relationship of companies involved in the Fund please read the prospectus.
Bitcoin and bitcoin futures are a relatively new asset class and the market for bitcoin is subject to rapid changes and uncertainty. Bitcoin and bitcoin futures are subject to unique and substantial risks, including significant price volatility and lack of liquidity. The value of an investment in the ETF could decline significantly and without warning, including to zero.
You should be prepared to lose your entire investment. The ETF does not invest directly in or hold bitcoin. The price and performance of bitcoin futures should be expected to differ from the current “spot” price of bitcoin. These differences could be significant. Bitcoin futures are subject to margin requirements, collateral requirements and other limits that may prevent the ETF from achieving its objective. Margin requirements for futures and costs associated with rolling (buying and selling) futures may have a negative impact on the fund’s performance and its ability to achieve its investment objective. Bitcoin is largely unregulated and bitcoin investments may be more susceptible to fraud and manipulation than more regulated investments. Bitcoin and bitcoin futures are subject to rapid price swings, including as a result of actions and statements by influencers and the media.
Commodities and futures investing is generally volatile and risky which may not be suitable for all investors. Futures may be affected by Backwardation: a market condition in which a futures price is lower in the distant delivery months than in the near delivery months. As a result, the fund may benefit because it would be selling more expensive contracts and buying less expensive ones on an ongoing basis; and Contango: A condition in which distant delivery prices for futures exceeds spot prices, often due to costs of storing and inuring the underlying commodity. Opposite of backwardation. As a result, the Fund’s total return may be lower than might otherwise be the case because it would be selling less expensive contracts and buying more expensive one.
Commodities and futures generally are volatile, and instruments whose underlying investments include commodities and futures are not suitable for all investors.
This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit the link below: http://hashdex-etfs.com
The Fund is a commodity pool regulated by the Commodity Futures Trading Commission.
The Fund, which is an ETP, is not a mutual fund or any other type of investment company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder.
Because the Fund will invest primarily in BITCOIN futures contracts and other derivative instruments based on the price of BITCOIN, an investment in the Fund will subject the investor to the risks of the BITCOIN market, and this could result in substantial fluctuations in the price of the Fund’s shares.
Shares of the Fund are not insured by the Federal Deposit Insurance Corporation (“FDIC”), may lose value and have no bank guarantee.
Unlike mutual funds, the Fund generally will not distribute dividends to its shareholders. Investors may choose to use the Fund as a means of investing indirectly in bitcoin, and there are risks involved in such investments.
This material is not an offer or solicitation of any kind to buy or sell any securities outside of the United States of America.
The Benchmark is HDEFI – HASHDEX U.S. BITCOIN FUTURES FUND BENCHMARK INDEX, the average of the closing settlement prices for the first to expire and second to expire Bitcoin Futures Contracts listed on the CME. The index is calculated and disseminated by ICE DATA INDICES, LLC.