The cryptocurrency market faced tough challenges in the last four weeks as the overall market cap dropped by nearly $1 trillion. But, the latest dip in the value of digital assets is not stopping institutional investors from crypto adoption.
According to the latest announcement, Victory Capital Management, the US-based investment management firm, is planning to enter the cryptocurrency market. The company has partnered with Nasdaq and financial services provider Hashdex.
Victory Capital aims to launch a private fund for accredited investors that will track the Nasdaq Cryptocurrency Index (NCI). On the other hand, Hashdex will provide its trading and asset management services.
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Commenting on the latest announcement, Mannik Dhillon, President of Victory Solutions and Victory Capital Management, said: “We continually strive to provide our clients with the forward-thinking choices they want and believe cryptocurrency is a viable asset class that can be part of a well-diversified portfolio. 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.”
The adoption of cryptocurrency assets has increased significantly since the start of 2021. Several organizations around the world revealed their crypto holdings and announced plans to enter the cryptocurrency market. In March 2021, Aker ASA, an Oslo-based $6 billion public firm, announced its plan to establish a dedicated Bitcoin unit.
Nasdaq Cryptocurrency Index
NCI is a multi-coin index that tracks the performance of a diverse basket of USD-traded cryptocurrency assets. The index is currently tracking several digital currencies including Bitcoin and Ethereum. “We have seen a developing maturity in the cryptocurrency ecosystem. Our work with industry partners such as Victory Capital and Hashdex furthers the innovation in the digital asset space,” Sean Wasserman, Vice President, Global Head of Index and Advisor Solutions at Nasdaq commented.