Victory Capital Holdings has announced plans to enter the cryptocurrency market by serving as the exclusive sponsor of private placement funds and other investment vehicles for US investors.
Victory Capital, a firm with over $150 billion in assets under management, announced yesterday that it is planning to enter the crypto market soon. The asset management firm wants to serve as an exclusive sponsor of private placement funds and other vehicles for US investors.
The investment vehicles would be based on the Nasdaq Crypto Index (NCI), a multi-coin crypto index co-developed by NASDAQ and Hashdex. In a press release, the firm said, “Victory Capital plans to launch a private fund for accredited investors that will track the NCI. Additionally, Victory Capital will be offering private funds that track the Nasdaq Bitcoin Reference Price Index as well as the Nasdaq Ethereum Price Index. Hashdex will provide its trading and asset management expertise to each of these products.”
Mannik Dhillon, President, VictoryShares and Solutions, said the firm believes cryptocurrency is a viable asset class, and it is excited to provide its clients with the forward-thinking choices they desire. “By investing in a portfolio designed to track the NCI, investors can seek returns that align with the cryptocurrency market in a diversified manner, gaining exposure to multiple digital assets as this market continues to evolve and mature. We are actively considering other vehicles and wrappers to bring these capabilities to a broader set of investors,” Dhillon added.
NASDAQ and Hashdex developed the NCI to address the rapidly growing institutional interest in cryptocurrencies and other digital assets. Sean Wasserman, Vice President, Global Head of Index and Advisor Solutions, Nasdaq, testified that the cryptocurrency market has matured in recent years, and they remain committed to expanding innovations in the space.
The crypto market has welcomed numerous institutional investors over the past year, and the adoption keeps growing. The rising demand for cryptocurrencies in various parts of the world is convincing traditional financial institutions to enter the market and provide crypto-related services to their clients.