Hashdex Nasdaq CME Crypto Index ETF (NASDAQ: NCIQ)

Hashdex Nasdaq CME Crypto Index ETF is a Delaware statutory trust that was organized on July 12 2024 and operates under a trust agreement amended and restated on January 20 2026. The trust issues shares of beneficial interest that trade on the Nasdaq Stock Market under the ticker NCIQ and are designed to give investors price exposure to a basket of crypto assets that constitute the Nasdaq CME Crypto Settlement Price Index. The sponsor of the trust is Hashdex Asset Management Ltd which oversees investment decisions while CSC Delaware Trust Company serves as trustee. Administrative functions are performed by U S Bancorp Fund Services LLC acting as administrator and transfer agent and U S Bank National Association holds cash balances. Crypto assets are safeguarded by Coinbase Custody Trust Company LLC BitGo Trust Company Inc and Fidelity Digital Asset Services LLC. The trust follows a passive strategy that seeks to replicate the daily movements of the index minus expenses and does not engage in active trading or leverage. It seeks to track the performance of a material portion of the overall crypto asset market by holding the index constituents in proportion to their free float market capitalization. The trust does not purchase or sell digital assets other than in connection with the creation and redemption of baskets of ten thousand shares or to pay currently due expenses. This structure provides a regulated exchange traded vehicle for investors who wish to gain exposure to crypto assets without the need to manage private keys or custody solutions.

The trust generates revenue primarily through a management fee that equals 0.25 percent per annum of the daily net asset value of the trust. This fee is accrued daily and paid monthly in cash to the sponsor Hashdex Asset Management Ltd. In addition to the management fee the trust incurs ordinary expenses such as administrator transfer agent custodian trustee and marketing agent costs which are reimbursed by the sponsor under the service agreements. The trust does not distribute cash dividends or interest to shareholders; instead any income or realized gains are reinvested in the index constituents to maintain alignment with the index. Creation and redemption of shares occur in blocks of ten thousand shares known as baskets and are facilitated by authorized participants who either deliver cash or the underlying crypto assets to the trust in exchange for shares. This mechanism allows the trust to meet investor demand while preserving the passive tracking objective and ensures that the net asset value reflects the index performance minus fees and expenses. The sponsor may waive all or a portion of the management fee at its discretion but any such waiver does not create an obligation to continue waiving fees in future periods.

Within the competitive landscape of exchange traded products that offer crypto asset exposure Hashdex Nasdaq CME Crypto Index ETF distinguishes itself as a regulated index tracking fund that relies on a transparent rules based methodology overseen by Nasdaq and calculated by CF Benchmarks Limited. Competitors include other crypto focused ETFs and grantor trusts such as those provided by Grayscale Bitwise VanEck and ProShares which may differ in fee structure index selection replication approach or underlying index provider. The trust’s advantages stem from its low management fee of 0.25 percent its reliance on a quarterly rebalancing process that adjusts constituents based on free float market capitalization and its use of the Nasdaq CME Crypto Settlement Price Index which incorporates surveillance data from the Chicago Mercantile Exchange to enhance price integrity and reduce susceptibility to manipulation. Furthermore the trust operates under a trust structure that is not registered as an investment company under the Investment Company Act of 1940 thereby avoiding certain regulatory burdens while still providing a publicly traded vehicle for crypto asset exposure. This combination of low cost transparent methodology and reputable index provider positions the trust favorably among investors seeking efficient and low friction access to the crypto market.

The trust serves a diverse base of investors who seek convenient access to crypto assets without the operational complexities of managing private keys maintaining wallets or navigating cryptocurrency exchanges. This base includes retail investors who buy and sell shares through traditional brokerage accounts and institutional investors such as asset managers hedge funds and family offices that use the ETF as a tool for tactical or strategic allocation to the crypto sector. Authorized participants which are registered broker dealers such as Macquarie Capital USA Inc Virtu Americas LLC and Cantor Fitzgerald Co also interact with the trust by creating and redeeming baskets to facilitate liquidity and ensure that the share price remains closely aligned with the net asset value. While the filing does not disclose specific end investor names the described categories illustrate the typical clientele that benefits from the trust’s exchange traded format and passive investment approach. These investors value the ability to gain exposure to a diversified basket of crypto assets through a single security that trades on a national exchange during regular market hours.