Hashdex, a global crypto-focused asset manager, has announced the launch of its Staking Program for all non-bitcoin funds and ETFs 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, the firm says.
“Hashdex is committed to continually providing cutting edge products that meet the high standards of global professional investors, and our new Staking Program further reinforces our unmatched ability to evolve in-line with the growing crypto ecosystem,” says Marcelo Sampaio, Co-Founder & CEO of Hashdex. “Staking is a key benefit of select cryptocurrencies, serving as passive income and enabling institutional and retail investors to benefit from valuable staking rewards while supporting 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.”
Hashdex writes that its 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 while contributing to network security, the firm says. The Program will automatically be incorporated in the firm’s funds and ETFs in the Cayman Islands, Brazil and Chile, with the exception of bitcoin-only products. This in turn enables Hashdex to offer higher net returns on its products, the firm writes, 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,” says Bruno Caratori, Co-Founder & 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 that any ETF issuer with proof of stake crypto assets should return the staking rewards value to clients, even when the ETF is not a staked ETF.”
To carry out the Staking Program, Hashdex has selected providers: ‘With an excellent track record and risk controls 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. As part of Hashdex’s ongoing mission to provide investors around the world with the opportunity to participate in the crypto ecosystem through innovative products and services, the firm is reviewing additional regions in which to expand its Staking Program.”