Hashdex ETF sets staking reward split for investors

Hashdex is adding staking to its Nasdaq CME Crypto Index ETF (NCIQ), but public shareholders will receive rewards only after the sponsor's annual threshold is met. The structure will affect how investors capture yield from the fund's crypto holdings.

Under a July 23 prospectus supplement, the staking provider first deducts its share of gross rewards. Hashdex then receives all remaining net staking income up to 0.25% of NCIQ's common-share net asset value through a separate, unlisted Sponsor Share. Net income above that level is split 40% to Hashdex and 60% to the trust for public shareholders.

For example, if net staking income reached 1% of common-share NAV over a full year, the trust would receive 0.45%. Hashdex would receive 0.55%, including the first 0.25%. The calculation is prorated for partial fiscal years, and the Sponsor Share return is separate from NCIQ's 0.25% management fee.

Coinbase Cloud is the initial staking provider, with operations expected to start once ready. Hashdex lists provider fees of 8% on gross Ethereum rewards, 8% for Solana validator commissions, and 5% for Cardano. The fund targets staking 10% to 20% of total NAV. Unbonding, slashing, and validator issues may affect rewards, redemptions, and tracking performance.