US Giant Victory Capital Launches Crypto Funds In Nasdaq Partnership

Victory Capital Management — a United States investment giant with $157.1 billion in assets under management as of the end of April — announced multiple new cryptocurrency index funds for accredited investors.

What Happened: According to a Wednesday announcement, the new fund is the result of a collaboration with Nasdaq NDAQ and crypto-focused asset manager Hashdex.

One fund will be tracking the Nasdaq Crypto Index (NCI), which as of press time consists of 62.39% of Bitcoin BTC/USD, 31.7%, Ether ETH/USD, 1.34% Litecoin LTC/USD, Chainlink LINK/USD, 1.01% Bitcoin Cash BCH/USD, 0.9% Uniswap UNI/USD, 0.75% Stellar XLM/USD, 0.66% Filecoin FIL/USD.

The index is also rebalanced and reconstituted every quarter. Nasdaq global head of index and advisor solutions and vice president Sean Wasserman recognized the progress made by the crypto industry:

“We have seen a developing maturity in the cryptocurrency ecosystem.”

Victory Capital Management will also launch private funds that track the Nasdaq Bitcoin Reference Price Index as well as the Nasdaq Ethereum Price Index. The firm explained that those products are the direct consequence of the "rapidly growing institutional investor interest in digital assets."

VictoryShares and Solutions chief financial officer, chartered alternative investment analyst and president Mannik Dhillon said:

“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.”