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A strong finish to a year of transition

Monthly Letters

Dear Investor,


This past year was one of transition for crypto assets. 

2023 began with prices depressed as the industry was still reeling from the fallout of FTX and other bad actors, but the year concluded with remarkable 12-month returns as a recovery for bitcoin and many other crypto assets took shape. The Nasdaq Crypto Index rose over 132% for the year. 

In our 2024 Crypto Investment Outlook, we discuss why we think this strong performance will carry over to the new year. Much of the excitement over 2024 is around the arrival of spot bitcoin ETFs in the US. Our CIO Samir Kerbage recently wrote an article about why this matters, and he’ll be on our monthly webinar on Wednesday, January 10 to discuss the latest developments regarding spot ETFs. You can register for the webinar here.  

We wish all of you a happy and prosperous new year. As always, we are greatly appreciative of your trust in us and are here to answer any questions you may have.  


-Your Partners at Hashdex 



Market Review


December shared many similarities with November. It was a positive month for risk assets and the S&P 500 and Nasdaq 100 indices posted gains, this time at 4.4% and 5.5%, respectively. The Nasdaq Crypto Index (NCI) also saw a double-digit positive return, rising 12.8%. Once again, Bitcoin (BTC) and Ethereum (ETH) claimed the fourth and fifth positions in terms of performance among NCI constituents, but with the order reversed as BTC (+12.8%) outperformed ETH (+12.3%). Similar to November, the two largest crypto assets lagged behind Polkadot (+54.6%) and Uniswap (+26.0%). The NCI’s newcomer, Arbitrum, took the spotlight, yielding 51.8% in its first month in the index.

Another similarity between November and December was that the NCI was outperformed by all other indices serving as benchmarks for Hashdex products. Once again, the top performer among them was the CF Benchmarks Smart Contract Platforms, with a 51.2% appreciation, driven by Solana (+74.9%) and Cardano (+59.7%). The second-best performing index was the Vinter Hashdex Risk Parity Momentum Index, with a rise of 33.4%. The other sectoral indices from CF Benchmarks—Digital Culture and Decentralized Finance (DeFi)—increased by 20.9% and 19.5%, respectively. All constituents of all five indices showed positive returns in December.

December concluded a remarkable year of recovery for crypto assets, with the NCI rising by 132.6%. Despite being a year where Bitcoin, and to a lesser extent Ethereum, nearly monopolized attention, the last two months served as a reminder that there is a vast crypto world beyond the two main assets. This trend may solidify throughout 2024. We remain highly optimistic about what the future holds for crypto assets and, consequently, for their investors.




Top Stories

MicroStrategy adds 14,620 BTC to its balance sheet

On its December 27, 2023 form 8-K, Michael Saylor’s MicroStrategy (MSTR) reported an acquisition of an additional 14,620 BTC, with the US business intelligence company now holding a total of 189,150 BTC at an average cost basis of $31,168 per bitcoin. After carrying an unrealized loss of nearly $2 billion in late 2022, MicroStrategy’s bitcoin bet is getting the company increasingly closer to holding 1% (210,000 BTC) of the fully diluted BTC supply. 


Hong Kong introduces friendly regulatory framework, aims to lead in crypto ETFs 

Hong Kong's Securities and Futures Commission and Hong Kong Monetary Authority have issued rules addressing the possibilities of allowing investment firms to offer crypto ETFs. These rules focus on setting standards for the custody of clients' digital assets. The policy shift positions Hong Kong as a leader in meeting the increasing demand for regulated crypto exposure in Asia among global institutional investors.


FASB confirms 'Fair Value' approach for corporate crypto holdings

The US Financial Accounting Standards Board's recent update allows companies to recognize changes in cryptocurrency fair value versus the previous practice of reporting losses solely when assets are below purchase price. Companies can now diversify reserves without accounting obstacles, potentially boosting corporate demand for crypto assets. This benefits both businesses and investors, providing a clearer view of company holdings. It may also encourage US firms to explore crypto assets for balance sheet diversification.



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Investment in any investment vehicle and cryptoassets is highly speculative and is not intended as a complete investment program. It is designed only for sophisticated persons who can bear the economic risk of the loss of their entire investment and who have limited need for liquidity in their investment. There can be no assurance that the investment vehicles will achieve its investment objective or return any capital. No guarantee or representation is made that Hashdex’s investment strategy, including, without limitation, its business and investment objectives, diversification strategies or risk monitoring goals, will be successful, and investment results may vary substantially over time. Nothing herein is intended to imply that the Hashdex s investment methodology or that investing any of the protocols or tokens listed in the Information may be considered “conservative,” “safe,” “risk free,” or “risk averse.”

Certain information contained herein (including financial information) has been obtained from published and non-published sources. Such information has not been independently verified by Hashdex, and Hashdex does not assume responsibility for the accuracy of such information. Hashdex does not provide tax, accounting or legal advice. Certain information contained herein constitutes forward-looking statements, which can be identified by the use of terms such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue”  “believe” (or the negatives thereof) or other variations thereof. Due to various risks and uncertainties, including those discussed above, actual events or results, the ultimate business or activities of Hashdex and its investment vehicles or the actual performance of Hashdex, its investment vehicles, or digital tokens may differ materially from those reflected or contemplated in such forward-looking statements. As a result, investors should not rely on such forward- looking statements in making their investment decisions. None of the information contained herein has been filed with the U.S. Securities and Exchange Commission or any other governmental or self-regulatory authority. No governmental authority has opined on the merits of Hashdex’s investment vehicles or the adequacy of the information contained herein.

Nasdaq®, Nasdaq Crypto IndexTM, NCITM, Nasdaq Crypto Index EuropeTM, NCIETM are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Hashdex Asset Management Ltd. The Hashdex Nasdaq Crypto Index Europe ETP (the Product) have not been passed on by the Corporations as to their legality or suitability. The Product is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT.


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