Hashdex launches its fourth ETF on B3. Photo: Hashdex.
Hashdex, Latin America’s largest crypto asset manager, is launching an index fund (ETF) linked to decentralized finance (DeFi) protocols. Reservation requests for DEFI11 begin this Tuesday (18) and activation on B3 in February. The initial investment per share is expected to be approximately R$50. This is Hashdex’s fourth ETF on B3.
ETFs are funds that track indexes of one or several assets. For example, indices of individual or combined assets such as bitcoin, ethereum, gold and stocks of companies with good sustainability performance. In addition, shares are traded on stock exchanges. These are risky investments, but in theory with better predictability of performance. Which doesn’t mean more or less return, just more predictability.
THE HASH11 has more than 125,000 investors and around R$2.6 billion under management, the company said. “DeFi investments are applications based on blockchain and smart contracts,” said Marcelo Sampaio, CEO of Hashdex. These are services that partly replicate some traditional products, such as insurance and credit. But with differences that only blockchain allows, such as operations without intermediaries. The Central Bank, for example, is thinking of allowing the use of DeFi with the digital real.
In the case of DEFI111, the fund will follow the “CF DeFi Modified Composite Index”. The development is with CF Benchmarks, which develops cryptocurrency indices. Initially, the index will have 12 assets in three categories. According to Hashdex, one of them is the DeFi protocol, which includes Unisawap, AAVE, Compound, Maker, Yearn, Curve, Synthetix, and AMP.
Hashdex will have four ETFs on B3
Another category is support protocols. These “support DeFi protocols with data storage and query services, identity verification and scalability solutions.” In this group are Polygon, Chainlink and The Graph. Finally, there is the category Recording Platforms, which are the blockchains where transactions are validated and recorded. And there is Ethereum, the main blockchain network for DeFis.
XP, ItaĂş BBA and Banco Genial are coordinating the ETF offering. The total administration fee is 1.3%. Hashdex has around R$5 billion under management. Its other ETFs are HASH11, which was the first and is a basket of cryptocurrencies, BITH11, for bitcoin, and ETHE11, for ethereum. In addition to cryptocurrency investment funds.
In addition to Hashdex, B3 also has two QR Asset ETFs. One of them, QBTC11 is focused on bitcoin. And QETH11 on ethereum. ETFs have, for many investors, the greatest ease of investing in crypto, since it is not necessary to have a digital wallet, for example, and manage the resources alone.