Hashdex Brings Staking to Its Nasdaq CME Crypto Index ETF

Hashdex, the sponsor of the Nasdaq CME Crypto Index ETF (NCIQ), has announced plans to stake some of its crypto holdings through Coinbase Cloud. The target staking range is between 10% and 20% of the fund's net asset value (NAV).

The staked assets will include Ethereum, Solana, and Cardano, which currently make up 11.75%, 3.17%, and 0.49% of NCIQ's holdings, respectively.

Hashdex will take the first slice of net income from staking, up to a threshold equal to 0.25% of common-share NAV through its Sponsor Share class. Any excess income above this threshold will be split 40% to Hashdex and 60% to the trust for holders of publicly traded NCIQ common shares.

The prospectus notes that provider deductions vary by asset, with Coinbase Cloud taking an 8% fee on gross ether staking rewards, an 8% validator commission for Solana, and a 5% validator commission for Cardano. These fees will reduce the net income available to Hashdex and its shareholders.