The president of Victory Shares and Solutions Mannik Dhillon stated that cryptocurrencies are a viable asset class and can form part of a diversified asset portfolio.
Asset management firm Victory Capital Holdings (NASDAQ: VCTR), on Wednesday 9th June 2021, announced that its investment advisor Victory Capital Management would delve into the cryptocurrency market. The firm stated it would partner with Nasdaq and Brazilian digital asset manager Hashdex to make this happen.
By this move, Victory Capital will become the sole sponsor of private funds and other investment vehicles for accredited US investors interested in the cryptocurrency sphere. These funds will use the institutional-grade strategy, the Nasdaq Crypto Index (NCI) co-developed by Nasdaq and Hashdex. The NCI lists such digital currencies as Bitcoin (BTC), Bitcoin Cash (BCH), Chainlink (LINK), Ether (ETH), Filecoin (FIL), Litecoin (LTC), Stellar Lumen (XLM), and Uniswap (UNI).
Despite the bullish trend in the market in recent times, interest in the digital asset ecosystem has continued to grow. The NCI so-called was designed to solve this increasing interest by institutions looking to invest in crypto-assets. The index was developed to be dynamic, enable representativeness by allowing a variety of digital assets, and be easily trackable by investors. It utilizes strict eligibility criteria and maintains market representativeness with a quarterly attempt at rebalancing.
Victory Capital will track the Nasdaq Bitcoin Reference Price Index and the Nasdaq Ethereum Price Index with its private fund offering. Hashdex will provide additional trading and portfolio management expertise for these individual products.
Speaking on the development, the president of Victory Shares and Solutions, Mannik Dhillon stated digital currencies are a viable asset class and can form part of a diversified asset portfolio. He went further to state that a private offering that tracks the NCI will help investors seek returns from the digital currency ecosystem while gaining exposure to multiple digital currencies all at once. This is a major move even as the ecosystem continues to grow and evolve.
About Victory Capital
Victory Capital is a worldwide global asset management company with up to $157.1 billion in securities. The company provides varying investment strategies and vehicles to different categories of investors including individuals, intermediaries, institutions and retirement platforms.
These investment vehicles include mutual funds, individually managed assets accounts, multi-asset class strategies, investor-specific solutions and a 529 College savings plan.
Hashdex is a Brazilian digital asset firm. It was established in 2018 to provide a link between the traditional financial market and the cryptocurrency market. The asset management firm created the first cryptocurrency index funds and manages the same for non-US investors.
Hashdex first partnered with Nasdaq in September 2020 to issue a Bitcoin exchange-traded fund in Bermuda. This product was approved by the Bermuda Stock Exchange in February.
By entering into partnership with Victory Capital and Nasdaq, the same investment opportunities will now be made available for investors in the US.