Victory Capital Management, a US-based investment firm, that manages $157.1 billion in assets has revealed its plans to enter the cryptocurrency market in an official press release. The company has collaborated with Nasdaq and Hashdex, a financial services provider.
In the past four weeks, the cryptocurrency market has encountered significant hurdles, with the global market cap falling by about $1 trillion. However, the recent downturn in the value of digital assets is not deterring institutional investors from adopting cryptocurrency.
Victory Capital intends to offer a private fund for authorized investors based on the Nasdaq Cryptocurrency Index (NCI). Hashdex, on the other hand, will offer trading and asset management services.
Mannik Dhillon, President of Victory Solutions and Victory Capital Management, stated
We continually strive to provide our clients with the forward-thinking choices they want and believe cryptocurrency is a viable asset class that can be part of a well-diversified portfolio. By investing in a portfolio designed to track the NCI, investors can seek returns that align with the cryptocurrency market in a diversified manner, gaining exposure to multiple digital assets as this market continues to evolve and mature. We are actively considering other vehicles and wrappers to bring these capabilities to a broader set of investors.
Nasdaq Cryptocurrency Index
Brazil-based Hashdex collaborated with Nasdaq to create the NCI, which aims to increase institutional interest in digital assets. NCI is a multi-coin index that traces the performance of a diverse basket of USD-traded cryptocurrency assets. Currently, the index is monitoring many digital currencies, including Bitcoin and Ethereum.
In September 2020, Hashdex teamed with Nasdaq to launch a Bitcoin exchange-traded fund in Bermuda, with the Bermuda Stock Exchange licensing the product in February.
Nasdaq Crypto Index includes the following cryptocurrencies: Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Chainlink (LINK), Stellars Lumen (XLM), Filecoin (FIL), and Uniswap’s (UNI).
Sean Wasserman, Vice President, Global Head of Index and Advisor Solutions at Nasdaq, commented “We have seen a developing maturity in the cryptocurrency ecosystem. Our work with industry partners such as Victory Capital and Hashdex furthers the innovation in the digital asset space.”
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