Victory Capital forms exclusive agreements to enter crypto market

Victory Capital forms exclusive agreements to enter crypto market

Victory Capital Holdings, Inc. has recently announced the establishment of exclusive agreements by Victory Capital Management Inc., its investment adviser, with Nasdaq and Hashdex, the asset manager. The latest agreements are in line with the company’s target to enter the cryptocurrency market.

Victory Capital will serve as the exclusive sponsor of the private placement funds & other vehicles for investors in the U.S., based on the NCI (Nasdaq Crypto Index), a multi-coin crypto index developed by Hashdex and Nasdaq. The company is also planning to launch a private fund for accredited investors that are expected to track the NCI. In addition, it will offer private funds that track the Nasdaq Ethereum Price Index and Bitcoin Reference Price Index, while Hashdex will provide its asset management and trading expertise to each of the products.

The NCI has been formed to address the rapidly expanding interest of institutional investors in digital assets. This dynamic rules-based index is a broad representative of the investable cryptocurrency market landscape and is readily trackable by the investors. It also employs strict eligibility criteria & is quarterly rebalanced to maintain its current market representation.

On the other hand, Hashdex was founded in 2018 with an aim to build a simplified bridge between the traditional financial and crypto markets. It pioneered the 1st crypto index funds across the globe and has been managing index, systematic, and passive crypto funds available currently to non-U.S. investors.

Mannik Dhillon, CAIA, CFA, President of VictoryShares and Solutions at Victory Capital, has reportedly cited that the company is targeted towards providing forward-thinking choices to the clients and hails cryptocurrency to be the viable asset class. Through the investment in a portfolio designed to track the multi-coin crypto index, investors may seek returns in a diversified manner, thus gaining exposure to various digital assets as the cryptocurrency market continues to evolve over the years. It is also considering other wrappers and vehicles to bring the capabilities to more investors.

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