Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The Hashdex DeFi ETF will trade on Brazil’s B3 stock exchange and will track the CF DeFi Modified Composite Index. The index features some of the top DeFi tokens such as Compound (COMP), Uniswap (UNI), Aaave (AAVE), Maker (MKR), and others.
Decentralized finance (DeFi) is probably the next big thing in the crypto space and institutional players are already getting attracted to it. In recent weeks, two companies have made the move in launching the world’s first exchange-traded funds. On Thursday, February 17, Brazilian crypto asset manager Hashdex DeFi ETFs launch on the B3 stock exchange based in Brazil. This ETF trades under the ticker DEFI11 launched in partnership with global crypto index provider CF Benchmarks.
The DEFI11 ETF tracks the CF DeFi Modified Composite Index. This index also includes some of the DeFi tokens such as Compound (COMP), Uniswap (UNI), Aaave (AAVE), Maker (MKR), and others. Besides, the ETH also supports DeFi protocol support. Thus, it includes some identity verification and scalability systems including Chainlink, Polygon, and The Graph.
As per the early reports, the DEFI11 ETF attracted a total of 2,200 confirmed investors raising a total of $10.5 million. However, as per local publication InfoMoney, it was just one-tenth of the firm’s initial estimates of $96 million. The parent Hashdex Group manages a total of $1 billion in net assets under management.
The coordinators in the current DEFI11 ETF offering are XP, Itaú BBA and Banco Genial. This ETF will come along with a management fee of 1.3%.
The Rise of Crypto ETFs in Brazil
Financial players across the world have been looking to launch exchange-traded funds for digital assets. These ETFs usually provide a regulated environment for institutions to participate in the emerging crypto space.
However, the regulatory bodies in the U.S. have been reluctant to allow these products in the market citing investor protection concerns. Thus, countries like Brazil have emerged as one of the hot destinations for financial institutions to launch their ETF funds.
Hashdex is among the key players in launching crypto ETFs in Brazil. Last year in April 2021, Hashdex announced Brazil’s first crypto ETF HASH11, which is currently the second-most purchased crypto ETF on Brazil’s B3 stock exchange.
But Hasdex is not the only player to bring DeFi ETFs in the market. Earlier this month, Brazilian asset manager QR Capital launched a DeFi ETF on the B3 stock exchange under the ticker QDFI11. This DeFi ETF follows the Bloomberg Galaxy DeFi index.