The largest crypto asset manager in Latin America, Hashdex, announced on Thursday (Jan. 20) the approval of the world's first decentralized finance (DeFi) ETF. The ETF seeks to offer investors diversified, secure, and regulated exposure in all segments of the DeFi ecosystem and will be listed on the Brazilian stock exchange, B3, under the ticker symbol DEFI11 on February 17, 2022.
DeFi leverages blockchain and smart contracts to enable the creation of a new infrastructure for traditional financial services, such as loans, insurance and value transactions. In partnership with CF Benchmarks, a leading global crypto index provider, DEFI11 will mirror the "CF DeFi Composite Index" (BLOOMBERG: CFDFMCUB), an index that follows strict eligibility criteria to obtain the best representation of the DeFi phenomenon.
"We are confident that DeFi, through its innovative and disruptive technology, will exponentially grow and play a vital role in the financial sector of the future. By offering the first DeFi ETF in the world, we are providing our global investors with the ability to play a part in the next evolution of the crypto ecosystem" said Marcelo Sampaio, CEO of Hashdex.
"CF Benchmarks is very proud that the CF DeFi Composite Index will be the world's first DeFi Index to be tracked by an ETF" said Sui Chung, CEO of CF Benchmarks.
The index has a total of 12 assets, divided into three sub-portfolios to accurately reflect the entire value chain underpinning DeFi services:
- DeFi dApps, protocols that offer practical and modern solutions for financial services (Uniswap, AAVE, Compound, Maker, Yearn, Curve, Synthetix, and AMP);
- Service Protocols, which support DeFi protocols with data query services, often referred to as "Oracle" providers, and scalability solutions (Chainlink, The Graph, and Polygon); and
- Settlement Networks, blockchain on which transactions are validated and recorded (Ethereum network).
The introduction of DEFI11 builds on Hashdex's position as a global pioneer in crypto asset management. The firm is an exclusive partner of Nasdaq and co-developed the Nasdaq Crypto Index™ (NCI™), which benchmarks the institutionally investable crypto market.