• Private funds created due to rapid growth of “investor interest in digital assets”
  • Cryptocurrency is a viable asset class and could provide clients with the “forward-thinking choices” they want, said Mannik Dhillon, the president of VictoryShares and Solutions for Victory Capital

Asset management firm Victory Capital Holdings plans to enter the cryptocurrency market in an exclusive agreement with Nasdaq and crypto-focused asset manager Hashdex, the company announced in a press release on June 9. 

The San Antonio-based firm, which currently has $157.1 billion in assets under management, will be the exclusive sponsor of private placement funds and other vehicles for US investors based on the Nasdaq Crypto Index (NCI) for investors. 

While the company has announced plans to enter the cryptocurrency space, they “do not offer any vehicles in the asset class today,” said Mannik Dhillon, the President of VictoryShares and Solutions for Victory Capital, in an email to Blockworks on June 9.

The NCI was developed due to “rapidly growing institutional investor interest in digital assets,” the company’s press release said. 

Additionally, Victory Capital will be offering two other 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, it said.

There has been a developing maturity in the cryptocurrency ecosystem, said Sean Wasserman, vice president, global head of Index and Advisor Solutions at Nasdaq. 

“Our work with industry partners such as Victory Capital and Hashdex furthers the innovation in the digital asset space,” Wasserman said. 

Although bitcoin faced recent price drops, major billion dollar companies like Victory Capital are still showing interest in creating new operations to compete in the world of digital assets and diversify their companies by appealing to traditional investors’ growing interest in the cryptocurrency space.   

“We have seen an evolution in cryptocurrency that is continuing,” Dhillon said in an email. “Our clients want forward-thinking choices and we believe cryptocurrency is a viable asset class that can be part of a well-diversified portfolio.”

This story was updated on June 9, 2021, at 5:00 pm EDT.

  • Jacquelyn Melinek is a Houston-based reporter covering digital asset funds and markets. She previously reported on energy markets for S&P Global Platts and Bloomberg News and is published in over 65 news outlets. She graduated from the University of North Carolina at Chapel Hill with a degree in Media and Journalism.