Crypto firm Hashdex has partnered with crypto index provider Vinter for the launch of the Hashdex Crypto Momentum Factor ETP.
The firm writes that its first-of-its-kind investment vehicle is designed to enable institutional investors to capitalise on trending crypto assets that are experiencing upward price momentum.
The product is based on the momentum factor and is now listed on the SIX Swiss Exchange, and Xetra under ticker symbols “HAMO” and “HDXM”, respectively. The product will also be listed on EuroNext under the ticker symbol “HAMO” on Wednesday, November 9th. Trading for the Hashdex Crypto Momentum Factor ETP will also roll out over the following days, beginning today on the SIX Swiss Exchange and then subsequently on November 8th on Xetra and November 9th on EuroNext.
“To attract institutional investors, it is necessary to create innovative products”, says Jacob Lindberg, CEO of Vinter. “The Vinter Hashdex Risk Parity Momentum Index is an innovative index – it allocates to the top performing crypto assets, while limiting the risk. Hashdex is one of the largest crypto asset investing companies globally, and we are pleased to partner with them to launch this ETP in the European market.”
The new ETP tracks the Vinter Hashdex Risk Parity Momentum Index, co-developed by Hashdex and Vinter, and contains 12 large-cap crypto assets that are eligible on key European exchanges and exhibit relatively higher price momentum. The ETP limits the risk contribution of any single underlying asset and is rebalanced monthly. At launch, and as of the index’s last rebalancing, the four largest constituents accounting for 53 per cent of the portfolio are Tron (17.94 per cent), XRP (12.28 per cent), Polygon (12.21 per cent) and Binance Coin (10.63 per cent).
The firm writes that this allocation provides unique exposure compared to a market cap index and demonstrates the differentiation of the momentum approach. The top four allocations represent the crypto-assets with the best relative risk adjusted price performance, and the weights are determined in a quantitative and rules-based manner, providing exposure to assets that other more traditional approaches do not offer.
Bruno Sousa, Head of New Markets at Hashdex, says: “There is an increasing appetite from investors to invest in high momentum crypto assets, and we are delighted to be able to offer this within our latest product. Vinter has a highly experienced team with an excellent track record, and provided the on-demand quantitative data we needed to support the creation of this unique product that expands our product offering beyond traditional investment strategies.”
The launch of the Hashdex Crypto Momentum Factor ETP and its corresponding Vinter Hashdex Risk Parity Momentum Index builds on Hashdex’s ongoing expansion efforts in both Europe and worldwide. In May 2022, the firm launched its first European product: the Hashdex Nasdaq Crypto Index Europe ETP on the SIX Swiss Exchange, which, the firm writes, has seen strong net inflows since its listing despite challenging market conditions. The Hashdex Nasdaq Crypto Index Europe ETP is now tradable on the Euronext Paris and Euronext Amsterdam under the ticker symbols HASH FP and HASH NA, respectively, and on Xetra under the ticker symbol HDX1 GY.