Investment management company Victory Capital, with $ 157 billion in assets, announced that it intends to enter the cryptocurrency market and shared its plan.
Victory Capital Holdings Inc is an asset management company that operates its business through a franchise and solutions platform.
The company announced the creation of a fund that will invest in cryptocurrencies included in the Nasdaq Crypto Index (NCI).
Developed by the Brazilian Hashdex and the US stock exchange Nasdaq, the index tracks the performance of Bitcoin, Ethereum, and various altcoins. Victory Capital also plans to launch two separate funds that will track Bitcoin and Ethereum indices. The creators of indices – NASDAQ and Brazilian Hashdex – have granted Victory Capital an exclusive right to them in the US. The funds are designed for experienced investors, both institutional and retail. Hashdex will provide its trading and asset management experience for each of the products.
As a reminder, in February, Hashdex launched an ETF on the Bermuda Stock Exchange based on the Nasdaq-created NCI cryptocurrency index. The Nasdaq Crypto Index consists of eight cryptocurrencies. Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Chainlink, Stellar (XLM), Filecoin (FIL), and UNI from Uniswap. Bitcoin takes only 63% of the basket here, while Ethereum takes 32%.
Victory Capital believes cryptocurrencies are ideal for diversifying a portfolio of stocks and commodity futures. The choice of the NCI shows that the index is less volatile than the cryptocurrency market in general. But retains a high potential for profitability, showing 400% per annum.
Victory Capital, Nasdaq and Hashdex about their collaboration
Victory Capital spokesman Mannik Dhillon shared his opinion that cryptocurrency is a viable asset class that can be part of a well-diversified portfolio.
Sean Wasserman, head of indexing and advisory solutions at Nasdaq, noted that partnerships with companies such as Victory Capital and Hashdex will help drive digital asset innovation and innovation.
Hashdex CEO Marcelo Sampaio noted that the goal was to develop an institutional-grade index strategy that would allow beta ownership in the cryptoasset class.
It is worth noting that Victory Capital is not the first major American organization to plunge into the cryptocurrency space. So, many US banks have recently announced similar plans for products ranging from custody services to actively managed funds. Including Goldman Sachs, JPMorgan, Morgan Stanley and BNY Mellon.
Victory Capital’s statement spurred the growth of Bitcoin quotes
Victory Capital’s announcement of its intention to enter the crypto market and create a separate fund that will invest in digital assets spurred the growth of Bitcoin quotes. So, the cost of Bitcoin over the past day increased by $ 6 thousand (19%). And reached $ 37.5 thousand.The capitalization of the digital coin, according to CoinGecko, increased to $ 683 billion.
Bitcoin and the entire crypto industry have generated huge interest in recent months. In addition, today Bitcoin was adopted as the official national currency in the Central American country of El Salvador.