Investment management firm Victory Capital (NASDAQ: VCTR) recently filed an application for a crypto exchange-traded fund (ETF). The firm filed the application with US Security and Exchange Commission (SEC) on the 3rd of August. This came after Victory Capital announced a partnership with Nasdaq and Brazilian fund manager Hashdex as it ventures into cryptocurrency.
Victory Capital Seeks Crypto ETF
According to the application submitted, Victory Capital desires to list an ETF tracking the Nasdaq Crypto Index as a part of its contract with Hashdex. The Nasdaq Crypto Index consists of eight cryptocurrencies, including Bitcoin (BTC) and Bitcoin Cash (BCH). Others are Ethereum (ETH). Filecoin (FIL), Uniswap’s UNI, Litecoin (LTC), Chainlink’s LINK, and Stellar’s Lumen (XLM).
A statement from the SEC filing read:
“In seeking to achieve its investment objective, the Trust will invest substantially all of its assets directly in the digital assets, blockchain-based assets and other digital assets (“Cryptocurrencies”) that are components of the Index and will invest in such Cryptocurrencies in approximately the same weight as they represent in the Index.”
Mannik Dhillon, the president of Victory Capital’s ETF provider, VictoryShares, commented on the new development. He said:
“A potential future ETF offering will provide our clients with convenient exposure to multiple coins while introducing a new asset class for their portfolios.”
Victory Capital Announces Private Fund
Back in June, Victory Capital said it would begin working on exposing its US-based investors to the crypto market. In addition, the investment management firm said it would launch a private fund for accredited investors. Now, Victory has unveiled the private fund, Victory Hashdex Nasdaq Crypto Index Fund. The new fund focuses on
When Victory Capital announced its debut into the crypto space in June, the firm said it would track the Nasdaq Bitcoin Reference Price Index and the Nasdaq Ethereum Price Index with the new private fund offering. As for Hashdex, the Brazilian fund manager will contribute its trading and portfolio management skill for the individual products offered.
At the time, president Dhillon referred to digital currencies as a viable asset class. Dhillon added that cryptocurrencies could also become a part of a diversified asset portfolio. Explaining the concept of the private fund, the Victory Capital executive said that it would help investors seek returns from the crypto market while they have access to multiple digital currencies at the same time.
Victory Capital had over $161 billion in assets under management (AUM) as of the 30th of June. The firm has been recording increases over the months, jumping nearly 77% over the past year. Also, its year-to-date record shows an increase of 28.42% and a further gain of 13.79% in the last three months. In addition, Venture Capital has added nearly 9% in the last five days.
Currently at after-hours trading of $31,86, Victory Capital boasts of a market cap of $2.17 billion. next