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Bitcoin’s back on top

Monthly Letters

Dear Investor,


The first quarter of 2024 ended on a high note for crypto assets, with the Nasdaq Crypto Index (NCI) up over 63%. The bull market has clearly arrived. 

ETF inflows have been driving much of bitcoin’s strong outperformance this year, but there are several other factors strengthening its investment case. Macro conditions and the upcoming halving may drive near-term prices, but Samir Kerbage covers the other longer-term factors that are making the case for bitcoin in his latest Notes from the CIO.  

Our research analyst Lucas Santana also wrote an article about the impact of recent monetary shocks to bitcoin’s correlation to other asset classes, and how these events have impacted bitcoin’s role as a portfolio diversification tool. You can read that article here


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

March was a positive month for risk assets, with the S&P 500 and Nasdaq 100 indices rising 3.2% and 1.2%, respectively. However, the most notable event was bitcoin hitting another all-time high. After closing February at $61,000, bitcoin (BTC) needed a rise of just under 15% to surpass the high recorded in November 2021, and it took 11 days to do so.

After staying predominantly above $70,000 for two days and reaching a new high beyond $73,400, BTC began declining before falling below $63,000. However, starting from the 25th, bitcoin recovered and closed March above $71,000. Bitcoin and the Nasdaq Crypto Index (NCI) saw gains of 15.4% and 12.7%, respectively, marking the seventh consecutive positive month.

Other indices that serve as benchmarks for products managed by Hashdex also saw gains. Among the sectoral indices of CF Benchmarks, the main highlight was Digital Culture, which rose by 37.7%, driven by its most heavily weighted asset, Shiba Inu, which surged an incredible 128%. Decentralized Finance (DeFi) and Smart Contracts Platforms indices rose by 15.1% and 17.8%, respectively. The Vinter Hashdex Risk Parity Momentum Index appreciated by 10.4%.

Through March, the NCI rose 63.4%. The excellent first quarter of performance has gotten this most recent bull market off to a strong start, and we remain extremely confident in the digital asset class in the medium and long term.



Top Stories

World’s largest pension fund explores bitcoin as an investment

Japan's Government Pension Investment Fund (GPIF) is considering potential new investments, including bitcoin, seeking information on the impact of bitcoin’s integration into portfolios, as Japan explores legislation to embrace digital assets. This move highlights a growing recognition of the potential benefits they may offer to institutional portfolios.


London Stock Exchange will start market for bitcoin and ether ETNs

The London Stock Exchange plans to roll out BTC and ETH exchange-traded notes for professional investors on May 28. The announcement aligns with ongoing efforts to establish the UK as a more crypto-friendly hub.


Ethereum finalizes 'Dencun' upgrade to reduce second layer fees 

Ethereum successfully implemented its long-awaited Dencun upgrade, marking a pivotal moment in the network’s broadband phase. A key aspect of this upgrade is the introduction of "blobs," a novel data storage solution aimed at significantly reducing transaction fees on Layer-2 networks and bolster Ethereum's scalability. The Hashdex research team shares their views on why it matters for investors here.


Goldman Sachs and other prominent firms continue work on tokenizing assets

Blockchain provider Digital Asset recently conducted an important trial of its Canton Network, collaborating with several large, traditional financial institutions. This innovative blockchain service facilitated seamless transactions and settlements of tokenized assets, showcasing its versatility from fund registry to margin management.


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