Victory Capital Holdings has outlined plans to enter the cryptocurrency market through its wholly-owned investment adviser, Victory Capital Management. To do so, the branch has partnered with Nasdaq and crypto-focused asset manager Hashdex.
- Founded in 2013, Victory Capital Holdings is a US-based asset manager with nearly $160 billion in AUM as of April 30th, 2021.
- According to a press release shared on June 9th, the firm’s investment adviser, Victory Capital Management, has “established exclusive agreements” with Nasdaq and Hasdex to enter the digital asset space.
- The asset manager will serve as the exclusive sponsor of private placement funds and other products for US-based investors. They will be based on the Nasdaq Crypto Index (NCI), which was developed by Nasdaq and Hashdex.
- Apart from the private fund, which will be available for accredited investors only, Victory Capital will offer other products tracking the Nasdaq Bitcoin Reference Price index and the Nasdaq Ethereum Price Index soon.
“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.” – commented Mannik Dhillon, CFA, CAIA, and President of VictoryShares and Solutions.
- Sean Wasserman, Vice President and Global Head of Index and Advisor Solutions at Nasdaq, said these products could have been expected as the digital asset space has “seen a developing maturity” lately.
- Dhillon added that investors will be able to see returns that “align with the cryptocurrency market in a diversified manner” through the products tracking the NCI.
- It’s worth noting that Victory Capital is not the first large US-based institution to dip its toes into the crypto space. Numerous American banks, including Goldman Sachs, JPMorgan, Morgan Stanley, and BNY Mellon, recently announced similar plans with products ranging from custodial services to actively managed funds.