Hashdex Bitcoin Futures ETF (“DEFI”) product provides Institutional Investors with access to Bitcoin through a cost-effective and regulated exchange-traded fund
DEFI’s structure is well-positioned for potential future conversion to spot-price Bitcoin product
New York / Rio de Janeiro / London, March 16, 2023 – Hashdex, a leading global crypto-focused asset manager, is proud to celebrate the six month anniversary of the Hashdex Bitcoin Futures ETF, the world’s first Bitcoin Futures ETF (“exchange-traded fund”) registered solely under the Securities Act of 1933 (“’33 Act”) by ringing the Opening Bell at the New York Stock Exchange on Wednesday, March 15. The innovative product, developed with Teucrium Trading, LLC (“Teucrium”), a ’33 Act fund specialist focused on commodities funds, was launched on NYSE Arca on September 16, 2022.
“The importance of having access to institutional-quality products, processes and service providers cannot be stressed enough, and as institutional investors and wealth managers continue to look for Bitcoin exposure through regulated products we are proud to provide a cutting edge approach to gain exposure through a cost-effective and regulated exchange-traded fund,” said Marcelo Sampaio, Co-Founder & CEO of Hashdex. “As has been our mission since the founding of Hashdex, we remain steadfast in our commitment to serving as a responsible firm within this evolving, innovative space that, above all else, puts our investors first. We continue to work closely with global regulators to support and fuel growth within the crypto ecosystem and we’re hopeful that a successful conversion to a Bitcoin spot ETF, such as with our Hashdex Bitcoin Futures ETF, will be the next step for the industry.”
Bitcoin has seen roughly a 50% price increase year-to-date which Hashdex believes reinforces the underlying interest and confidence in the asset. Through the Hashdex Bitcoin Futures ETF, investors can participate in Bitcoin’s long-term growth potential while being confident that their funds remain secure through Hashdex’s transparent, risk-aware and diligent approach to working with leading exchanges and custodians. Hashdex serves as the Digital Asset Advisor to the Hashdex Bitcoin Futures ETF, and is responsible for providing its partners with research and analysis regarding bitcoin and bitcoin markets for use in the operation and marketing of DEFI.
“Recent uncertainty within the banking sector has reiterated Bitcoin’s use case and reinvigorated enthusiasm from investors in holding an asset class that acts as a decentralized store of value across macroeconomic conditions,” said Bruno Caratori, Co-Founder & COO of Hashdex. “The resurgence of interest given the strong performance for crypto assets this year, combined with many long-term investors who have been cautiously evaluating increased exposure in the space as part of their asset allocation strategies, has reinforced our commitment to ensuring the products we bring to market meet global investor needs and adhere to the highest standards.”
With offices in Brazil, the United States, and Europe, Hashdex is a renowned leader in the development of industry-first crypto offerings that enable global investors to participate in the crypto ecosystem. Nasdaq developed, in partnership with Hashdex, the Nasdaq Crypto Index™ (NCI™), which benchmarks the institutionally investable crypto market, and listed the world’s first crypto ETF in history, the Hashdex Nasdaq Crypto Index ETF, on the Bermuda Stock Exchange.
Hashdex currently has nearly 230,000 investors globally in its products. KPMG has served as the independent auditor for Hashdex's funds since 2018, and Fidelity Digital Assets, Coinbase Custody, and Bitgo Trust serve as custodians of digital assets managed by Hashdex.
The firm’s Research Team regularly publishes cryptocurrency resources for investors. Recent research published by Hashdex covers topics ranging from: Bitcoin’s recovery, optimism in the new year as bulls make their case, timing in crypto investing, and more.
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 nearly 230,000 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 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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The Fund does not invest directly in bitcoin, but provides price exposure to the crypto asset through bitcoin futures contracts. This gives investors the opportunity to capitalize on the cryptocurrency’s growth potential, its store of value characteristics, and the prospect of a decentralized future, without the complexities of self custody.
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 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.
Toroso Investments, LLC, Tidal ETF Services LLC and Victory Capital Management Inc. (the Marketing Agents) assist the Fund and Sponsor with certain functions and duties relating to marketing, which include the following: marketing, sales strategy, and related services.
Foreside Fund Services, LLC is the distributor for the Hashdex Bitcoin Futures ETF (DEFI) Fund.
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.