NCIQ 10-Q
Hashdex Nasdaq CME Crypto Index ETF (NCIQ)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
for the quarterly period ended
OR
for the transition period from _________ to _________
Commission File Number:
| (Exact name of registrant as specified in its charter) |
| (State
or other jurisdiction of incorporation or organization) |
(I.R.S.
Employer Identification No.) |
(Address of principal executive offices)
Registrant’s telephone number, including area code:
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||
Hashdex Nasdaq CME Crypto Index ETF |
Securities registered or to be registered pursuant to Section 12(g) of the Act: None.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| ☒ | Smaller reporting company | ||
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes
As of June 30, 2026, there were
Table of Contents
| Page | ||
| Part I. FINANCIAL INFORMATION | ||
| Item 1. | Financial Statements (Unaudited) | 1 |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 2 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 12 |
| Item 4. | Controls and Procedures | 12 |
| Part II. OTHER INFORMATION | ||
| Item 1. | Legal Proceedings | 13 |
| Item 1A. | Risk Factors | 13 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 13 |
| Item 3. | Defaults Upon Senior Securities | 13 |
| Item 4. | Mine Safety Disclosures | 13 |
| Item 5. | Other Information | 13 |
| Item 6. | Exhibits | 14 |
i
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements.
Index to Financial Statements
1
Hashdex Nasdaq CME Crypto Index ETF
Statements of Assets and Liabilities
| June 30, 2026 |
December 31, 2025 |
|||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Investments in Crypto Assets, at fair value (cost $ | $ | $ | ||||||
| Cash | ||||||||
| Total Assets | ||||||||
| LIABILITIES | ||||||||
| Management fee payable, net of fees waived | ||||||||
| Total Liabilities | ||||||||
| NET ASSETS | $ | $ | ||||||
| NET ASSETS CONSIST OF: | ||||||||
| Paid-in capital | $ | $ | ||||||
| Total distributable earnings (accumulated deficit) | ( | ) | ( | ) | ||||
| NET ASSETS | $ | $ | ||||||
| Net Asset Value (unlimited shares authorized): | ||||||||
| Total Fund (unlimited shares authorized): | ||||||||
| Shares Issued and Outstanding, par value, amount authorized | ||||||||
| Net Asset Value per Share | $ | $ | ||||||
The accompanying notes are an integral part of these financial statements.
F-1
Hashdex Nasdaq CME Crypto Index ETF
Schedule of Investments
June 30, 2026
(Unaudited)
| Description: Assets | Fair Value | Percentage of Net Assets |
Quantity | |||||||||
| Crypto Assets | ||||||||||||
| Bitcoin | $ | % | ||||||||||
| Ether | % | |||||||||||
| XRP | % | |||||||||||
| Solana | % | |||||||||||
| Cardano | % | |||||||||||
| Stellar | % | |||||||||||
| Chainlink | % | |||||||||||
| Bitcoin Cash | % | |||||||||||
| Total Crypto Assets (cost $ | $ | % | ||||||||||
| Total Investments (cost $ | $ | % | ||||||||||
| Other Assets in Excess of Liabilities | % | |||||||||||
| Total Net Assets | $ | % | ||||||||||
The accompanying notes are an integral part of these financial statements.
F-2
Hashdex Nasdaq CME Crypto Index ETF
Schedule of Investments
December 31, 2025
| Description: Assets | Fair Value | Percentage of Net Assets |
Quantity | |||||||||
| Crypto Assets | ||||||||||||
| Bitcoin | $ | % | ||||||||||
| Ethereum | % | |||||||||||
| XRP | % | |||||||||||
| Solana | % | |||||||||||
| Cardano | % | |||||||||||
| Chainlink | % | |||||||||||
| Stellar | % | |||||||||||
| Total Crypto Assets (cost $ | $ | % | ||||||||||
| Total Investments (cost $ | $ | % | ||||||||||
| Other Assets in Excess of Liabilities | % | |||||||||||
| Total Net Assets | $ | % | ||||||||||
The accompanying notes are an integral part of these financial statements.
F-3
Hashdex Nasdaq CME Crypto Index ETF
Statements of Operations
(Unaudited)
| Three Months Ended June 30, 2026 (Unaudited) |
Three Months Ended June 30, 2025 (Unaudited) |
Six Months Ended June 30, 2026 (Unaudited) |
Period February 14, 2025* through June 30, 2025 (Unaudited) |
|||||||||||||
| INVESTMENT INCOME (LOSS) | ||||||||||||||||
| Income: | ||||||||||||||||
| Interest income | ||||||||||||||||
| Total Income | ||||||||||||||||
| Expenses: | ||||||||||||||||
| Management fees | ||||||||||||||||
| Other | ||||||||||||||||
| Total Expenses | ||||||||||||||||
| Less waiver | ( | ) | ( | ) | ( | ) | ||||||||||
| Net Expenses | ||||||||||||||||
| Net Investment Loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| REALIZED AND CHANGE IN UNREALIZED GAIN (LOSS) | ||||||||||||||||
| Net realized loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Net change in unrealized appreciation (depreciation) | ( | ) | ( | ) | ||||||||||||
| Net realized and change in unrealized gain (loss) | ( | ) | ( | ) | ||||||||||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
*
The accompanying notes are an integral part of these financial statements.
F-4
Hashdex Nasdaq CME Crypto Index ETF
Statements of Changes in Net Assets
(Unaudited)
| Three Months Ended June 30, 2026 (Unaudited) |
Three Months Ended June 30, 2025 (Unaudited) |
Six Months Ended June 30, 2026 (Unaudited) |
Period February 14, 2025* through June 30, 2025 (Unaudited) |
|||||||||||||
| INCREASE (DECREASE) IN NET ASSETS: | ||||||||||||||||
| OPERATIONS | ||||||||||||||||
| Net investment loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Net realized loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Net change in unrealized appreciation (depreciation) | ( | ) | ( | ) | ||||||||||||
| Net increase (decrease) in net assets resulting from operations | ( | ) | ( | ) | ||||||||||||
| CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
| Shares issued | ||||||||||||||||
| Shares redeemed | ( | ) | ||||||||||||||
| ETF transaction fees | ||||||||||||||||
| Net increase in net assets from capital share transactions | ||||||||||||||||
| Total increase (decrease) in net assets | $ | $ | $ | $ | ||||||||||||
| NET ASSETS | ||||||||||||||||
| Beginning of Period | $ | $ | $ | |||||||||||||
| End of Period | $ | $ | $ | $ | ||||||||||||
| * |
The accompanying notes are an integral part of these financial statements.
F-5
Hashdex Nasdaq CME Crypto Index ETF
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
| 1. | Organization |
Hashdex Nasdaq CME Crypto Index ETF (f/k/a Hashdex Nasdaq Crypto Index US ETF, prior to January 20, 2026) (the “Trust”) is a Delaware statutory trust organized on July 12, 2024. The Trust operates pursuant to the Fifth Amended and Restated Trust Agreement, dated January 20, 2026 (the “Trust Agreement”). The Trust issues shares of beneficial interest (“Shares”), representing fractional undivided beneficial interests in the Trust. The Shares trade on The Nasdaq Stock Market, LLC (the “Exchange”) under the symbol “NCIQ”. The principal office address of the Trust is 19 West 44th Street, Suite 200, New York, NY 10036 and the Trust’s telephone number is 800-927-9800. The Trust commenced operations on
The Trust is designed to provide investors with price exposure to certain crypto assets. Prior to January 20, 2026, such crypto assets were those included in the Nasdaq Crypto US Settlement Price™ Index (the “NCIUSS” or the “Former Index”). Effective January 20, 2026 (the “Transition Date”), the reference index changed to the Nasdaq CME Crypto Settlement Price Index™ (the “NCIS” or the “New Index”), as detailed below. References to the “Index” as used herein refer to the Former Index prior to the Transition Date and the New Index after the Transition Date. The NCIUSS represents the daily closing value of the Nasdaq Crypto US™ Index (the “NCIUS”), and the NCIS represents the daily closing value of the Nasdaq CME Crypto™ Index (the “NCI”). The NCIUSS and the NCIS apply substantially identical methodologies, reflect the same constituents, and are both designed to measure the performance of a material portion of the overall crypto asset market.
The Trust’s investment objective is to align the daily changes in the net asset value (“NAV”) of the Shares with the daily price changes of the Index, minus operational expenses and liabilities, by investing in the digital assets that are constituents of the Index or may be added as constituents of the Index in the future (the “Index Constituents”). Because the Trust’s investment objective is to track the price of the Index, changes in the price of the Shares may vary from changes in the individual Index Constituents’ prices.
The sponsor of the Trust is Hashdex Asset Management Ltd. (the “Sponsor”). CSC Delaware Trust Company is the trustee of the Trust (“Trustee”). U.S. Bancorp Fund Services, LLC (d/b/a U.S. Bank Global Fund Services) (“Global Fund Services” or the “Administrator”) provides administrative services to the Trust. Global Fund Services also serves as the Trust’s transfer agent (the “Transfer Agent”) and accounting agent (“Accounting Agent”). Paralel Distributors LLC is the marketing agent of the Trust (the “Marketing Agent”). Coinbase Custody Trust Company, LLC (“Coinbase Custody”), BitGo Trust Company, Inc. (“BitGo”) and Fidelity Digital Asset Services, LLC (“Fidelity”) are the custodians for the Trust’s crypto asset holdings (the “Crypto Custodians”). U.S. Bank National Association is the custodian for the Trust’s cash and cash equivalent holdings (the “Cash Custodian” and together with the Crypto Custodians, the “Custodians”).
The Trust is an exchange-traded fund. The Trust does not purchase or sell digital assets other than in connection with the creation and redemption of blocks of
An investment in the Trust is subject to the risks of an investment in the Index Constituents which are subject to a high degree of price variability, as well as to the risks of crypto asset markets more generally. An investment in the Trust may be riskier than other exchange-traded products that do not directly hold crypto assets, or financial instruments related to crypto, and may not be suitable for all investors. In addition, the Index Constituents may experience pronounced and swift price changes. Accordingly, there is a potential for change in the price of Shares between the time an investor places an order to purchase or sell with its broker-dealer and the time of the actual purchase or sale resulting from the price volatility of Index Constituents. The Index will be reconstituted and rebalanced quarterly, on the first Business Day in March, June, September, and December to align the weightings of the Index Constituents with the index methodology published by the Exchange. For purposes of making these calculations, a “Business Day” means any day other than a day when the Exchange is closed for regular trading.
The fiscal year end of the Trust is December 31st.
F-6
| 2. | Significant Accounting Policies |
The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of these financial statements.
Basis of Presentation
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and are stated in U.S. Dollars. The Trust qualifies as an investment company solely for accounting purposes and not for any other purpose, and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services - Investment Companies, but the Trust is not registered, and is not required to be registered, as an investment company under the Investment Company Act of 1940, as amended.
Use of Estimates
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reported period. Actual results could differ from those estimates.
Cash
Cash includes non-interest bearing non-restricted cash with one institution and is subject to credit risk to the extent its balance exceeds the federally insured limits. As of June 30, 2026 and December 31, 2025, the Trust’s balance did not exceed the federally insured limits.
Investment Transactions and Investment Income
For financial statement purposes, the Trust records investment transactions on the trade date of the investment purchase or sale. Gains and losses realized on sales of investments are determined by the specific identification method. Investments made by the Trust intend to be limited to investments in Index Constituents and cash and cash equivalents. Interest income is recorded on an accrual basis.
The Trust intermittently receives airdrops of new crypto assets at the custodial wallet addresses holding Trust assets. The use of airdrops is generally to promote the launch and use of new crypto assets by providing a small amount of the new crypto assets to the private wallets or exchange accounts of holders of existing related crypto assets. Airdropped crypto assets can have substantially different blockchain technology that has no relation to any existing crypto asset, and many airdrops may be without value. In accordance with the Trust’s registration statement on Form S-1, the Sponsor causes the Trust to irrevocably abandon any incidental rights and IR virtual currency arising from airdrops, forks, or similar events. Accordingly, the Trust does not recognize or record any airdropped crypto assets.
During the period ended June 30, 2026 and June 30, 2025, the Trust irrevocably abandoned all airdropped crypto assets received at its custodial addresses. No value was recognized in connection with any such airdrops.
Federal Income Taxes
The Trust is not subject to federal income taxes; each shareholder reports his/her allocable share of income, gain, loss, deductions or credits on his/her own income tax return. In accordance with GAAP, the Trust is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any tax related appeals or litigation processes, based on the technical merits of the position. The Trust files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Trust recording a tax liability that reduces net assets. However, the Trust’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations and interpretations thereof. The Trust recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed. interest expense or penalties have been recognized as of and for the fiscal period ended June 30, 2026 and June 30, 2025.
F-7
Valuation of Crypto Assets
In determining the value of the Trust’s holdings, the Trust will value the Index Constituents held by the Trust at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Trust identifies and determines the Trust’s principal market (or in the absence of a principal market, the most advantageous market) for crypto assets consistent with the application of the fair value measurement framework in FASB ASC 820-10, Fair Value Measurement. The principal market is the market with the greatest volume and level of activity that can be accessed. The Sponsor’s valuation procedures provide for the designation of the Sponsor to determine the valuation sources and policies to prepare the Trust’s financial statements in accordance with GAAP. The Sponsor obtains relevant volume and level of activity information and based on initial analyses will select an exchange market as the Trust’s principal market. The NAV and NAV per Share will be calculated using the fair value of the Index Constituents held by the Trust based on the price provided by this exchange market, as of 4:00 p.m. Eastern Time (“E.T.”) on the measurement date for GAAP purposes. The Sponsor will update its principal market analysis periodically and as needed to the extent that events have occurred, or activities have changed in a manner that could change the Sponsor’s determination of the principal market.
The Trust utilizes various inputs to determine the fair value of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuations methods. The three levels of inputs are:
| Level 1 – | Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. |
| Level 2 – | Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data. |
| Level 3 – | Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Trust’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available. |
The following table summarizes the valuation of investments as of June 30, 2026 and December 31, 2025 using the fair value hierarchy:
| June 30, 2026 (Unaudited) | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Balance | |||||||||||||
| Assets: | ||||||||||||||||
| Cryptocurrency | $ | $ | $ | $ | ||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| December 31, 2025 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Balance | |||||||||||||
| Assets: | ||||||||||||||||
| Cryptocurrency | $ | $ | $ | $ | ||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
There were no transfers between Level 1 and other levels for the fiscal period ended June 30, 2026 and December 31, 2025.
F-8
The cost basis of the investment of crypto assets recorded by the Trust for financial reporting purposes is the fair value of such crypto assets at the time of purchase. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors.
Calculation of NAV and NAV per Share
The Sponsor or its delegate shall calculate the Trust’s NAV each Business Day as of the earlier of the close of the Exchange or 4:00 p.m. E.T. As such, the NAV is calculated based on the value of the index price at 4:00 p.m. The assets of the Trust consist of the crypto assets held by the Trust and cash and cash equivalents. The Sponsor has the exclusive authority to determine the Trust’s NAV, which it has delegated to the Administrator.
The Trust’s NAV per Share is calculated by taking the current fair value of its total assets, subtracting any liabilities, and dividing that total by the number of Shares outstanding.
Segment Reporting
| 3. | Investment in Crypto Assets |
The following represents the changes in fair value of crypto assets held by the Trust during the six months ended June 30, 2026 and the period from February 14, 2025* through December 31, 2025:
| Fair Value | ||||
| Beginning balance as of January 1, 2026 | $ | |||
| Purchases | ||||
| Sales | ( | ) | ||
| Realized Gain | ||||
| Realized Loss | ( | ) | ||
| Change in Unrealized Appreciation | ||||
| Change in Unrealized Depreciation | ( | ) | ||
| Ending balance as of June 30, 2026 | $ | |||
| Fair Value | ||||
| Beginning balance as of February 14, 2025* | $ | |||
| Purchases | ||||
| Sales | ( | ) | ||
| Realized Gain | ||||
| Realized Loss | ( | ) | ||
| Change in Unrealized Appreciation | ||||
| Change in Unrealized Depreciation | ( | ) | ||
| Ending balance as of December 31, 2025 | $ | |||
*
| 4. | Trust Expenses |
The Trust pays the Sponsor a management fee (the “Management Fee”), monthly in arrears, in an amount equal to
F-9
Prior to March 16, 2026, the Sponsor had agreed to temporarily reduce its Management Fee to
In addition to the Trust’s Management Fee, the Trust pays all of its respective brokerage commissions, including applicable exchange fees and give-up fees, and other transaction related fees and expenses charged in connection with trading activities. The Trust also pays all fees and commissions related to any crypto transaction fees for on-chain transfers of assets. The Sponsor pays all other routine operational, administrative and other ordinary expenses of the Trust, including but not limited to, fees and expenses of the administrator, custodians, marketing agent, transfer agent, trustees, licensors, accounting and audit fees and expenses, tax preparation expenses, legal fees, ongoing U.S. Securities and Exchange Commission registration fees, individual Schedule K-1 preparation and mailing fees, and report preparation and mailing expenses. The Trust pays all of its non-recurring and unusual fees and expenses, if any, as determined by the Sponsor. Non-recurring and unusual fees and expenses are unexpected or unusual in nature, such as legal claims and liabilities and litigation costs or indemnification or other unanticipated expenses. Extraordinary fees and expenses also include material expenses which are not currently anticipated obligations of the Trust. Routine operational, administrative and other ordinary expenses are not deemed extraordinary expenses. In the event the Trust’s cash balance is insufficient to pay all fees and expenses, including the Management Fee, the Trust may need to sell crypto assets from time to time to pay for fees and expenses.
Initial costs and expenses related to the initial offer and sale of Shares were borne by the Sponsor.
Non-recurring, unusual or extraordinary expenses of the Trust will be allocated as determined by the Sponsor using a pro rata allocation methodology that allocates such Trust expenses to the Trust. Unusual or extraordinary expenses paid by Sponsor are not subject to any caps or limits. The Trust may be required to indemnify the Sponsor, and the Trust and/or the Sponsor may be required to indemnify the Trustee, Marketing Agent, Administrator, Custodians, and Transfer Agent under certain unusual or extraordinary circumstances. Any indemnification paid by the Trust and/or Sponsor generally would cover losses incurred by an indemnified party for (1) expenses incurred by a party when rendering services to the Trust or the Sponsor, (2) expenses arising from a breach of obligations or non-compliance with laws, or (3) expenses arising out of the formation, operation or termination of the Trust. Unless such expenses are specifically attributable to the Trust or arise out of the Trust’s operations, any such expenses will be allocated by the Sponsor using a pro rata methodology that allocates certain Trust expenses to the Trust.
Administrator, Custodians and Transfer Agent
Global Fund Services serves as the Administrator, Transfer Agent and Accounting Agent of the Trust pursuant to a Fund Servicing Agreement. U.S. Bank N.A., an affiliate of Global Fund Services, serves as the Trust’s Cash Custodian pursuant to a Custody Agreement. Coinbase Custody, BitGo and Fidelity are the Trust’s Crypto Custodians and keep custody of all of the Trust’s crypto assets, on behalf of the Trust.
Marketing Agent
The Trust employs Paralel Distributors LLC as the Marketing Agent for the Trust. The Marketing Agent is not entitled to compensation or reimbursement of expenses from the Trust, with any such remuneration to be paid by the Sponsor out of the Management Fee. The term of the agreement is three years, with provisions for automatic renewal and termination options available to both parties.
| 5. | Capital Share Transactions |
The Trust creates and redeems Shares on a continuous basis but only in Baskets of
The Sponsor and the Trust engage in crypto asset transactions for converting cash into Index Constituents to track the Index (in association with purchase orders) and crypto assets into cash (in association with redemption orders). The Administrator calculates the cost to purchase (or sell in the case of a redemption order) the amount of the Index Constituents represented by the Baskets being created (or redeemed). The amount of Index Constituents is equal to the combined NAV of the number of Shares included in the Baskets being created (or redeemed) determined as of 4:00 p.m. E.T. on the day the order to create or redeem Baskets is properly received.
F-10
Capital share transactions in the Trust were as follows:
| Three months ended June 30, 2026 (Unaudited) | Three months ended June 30, 2025 (Unaudited) | Six months ended June 30, 2026 (Unaudited) | Period February 14, 2025* through June 30, 2025 (Unaudited) | |||||||||||||
| Shares issued | ||||||||||||||||
| Shares redeemed | ( | ) | ||||||||||||||
| Net increase | ||||||||||||||||
| * |
| 6. | Related Parties |
The Sponsor is considered to be a related party to the Trust. The Trust’s operations are supported by its Sponsor.
The Sponsor provided the initial seed creation of
As of June 30, 2026, and December 31, 2025 the Trust has a liability to the Sponsor of $
The Sponsor arranged for the creation of the Trust and is responsible for the ongoing registration of the Shares for their public offering in the United States and the listing of Shares on the Exchange.
| 7. | Indemnification |
The Sponsor will not be liable to the Trust, the Trustee or any shareholder for any action taken or for refraining from taking any action in good faith, or for errors in judgment or for depreciation or loss incurred by reason of the sale of any Index Constituents or other assets of the Trust. However, the preceding liability exclusion will not protect the Sponsor against any liability resulting from its own gross negligence, bad faith, or willful misconduct. The Sponsor and each of its shareholders, members, directors, officers, employees, affiliates, and subsidiaries will be indemnified by the Trust and held harmless against any losses, liabilities or expenses incurred in the performance of its duties under the Trust Agreement without gross negligence, bad faith, or willful misconduct. The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation, opinion, endorsement, assignment, draft, or any other document of any kind prima facie properly executed and submitted to it by the Trustee, the Trustee’s counsel or by any other person for any matters arising under the Trust Agreement. The Sponsor shall in no event be deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided for in the Trust Agreement. Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any indemnified claim or liability under the Trust Agreement. The Trustee will not be liable or accountable to the Trust or any other person or under any agreement to which the Trust or any series of the Trust is a party, except for the Trustee’s breach of its obligations pursuant to the Trust Agreement or its own willful misconduct, bad faith or gross negligence. The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by the Trust from and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation or termination of the Trust, the execution, delivery or performance of the Trust Agreement or the transactions contemplated thereby; provided that the indemnified party acted without willful misconduct, bad faith or gross negligence.
F-11
| 8. | Commitments and Contingent Liabilities |
In the normal course of business, the Trust may enter into contracts that contain a variety of general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust which have not yet occurred and cannot be predicted with any certainty. However, the Sponsor believes the risk of loss under these arrangements to be remote.
| 9. | Concentration Risk |
The majority of the Trust’s assets are holdings of bitcoin, which creates a concentration risk associated with fluctuations in the price of bitcoin. Accordingly, a decline in the price of bitcoin will have an adverse effect on the value of the Shares of the Trust. Factors that may have the effect of causing a decline in the price of bitcoin include negative perception of crypto assets; a lack of stability and standardized regulation in the crypto asset markets; the closure or temporary shutdown of digital asset platforms due to fraud, business failure, security breaches or government mandated regulation; and a loss of investor confidence.
In addition to bitcoin, the Trust holds investments in other crypto assets, including Ethereum, XRP, Solana, Cardano, Chainlink, Stellar, and Bitcoin Cash which collectively represented approximately
| 10. | Financial Highlights |
| Three Months Ended June 30, 2026 (Unaudited) | Three Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2026 (Unaudited) | Period February 14, 2025^ through June 30, 2025 (Unaudited) | |||||||||||||
| Net asset value per share, beginning of period | $ | $ | $ | $ | ||||||||||||
| Net investment loss (1) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Net realized and unrealized gain (loss) (2) | ( | ) | ( | ) | ||||||||||||
| Net (decrease) increase in net assets from operations | ( | ) | ( | ) | ||||||||||||
| Net asset value per share, end of period | $ | $ | $ | $ | ||||||||||||
| Total return at net asset value (3) | ( | )% | % | ( | )% | % | ||||||||||
| Ratios to average net assets: (4) | ||||||||||||||||
| Total expenses | % | % | % | % (5) | ||||||||||||
| Net expenses | % | % | % | % (5) | ||||||||||||
| Net investment loss | ( | )% | ( | )% | ( | )% | ( | )% (5) | ||||||||
| ^ |
| (1) |
| (2) |
| (3) |
| (4) |
| (5) |
F-12
| 11. | Subsequent Events |
In preparing these financial statements, management of the Trust has evaluated the financial statements for the period ended June 30, 2026, and for subsequent events through the date of this filing. Other than as described below, management noted no material events requiring either recognition or disclosure in the financial statements.
Staking of the Trust’s Crypto Assets. On July 23, 2026, the Trust entered into a Third Amendment to the Sponsor Agreement with the Sponsor to permit staking of the Trust’s crypto assets. On the same date, the Sponsor and CSC Delaware Trust Company, as Trustee, entered into a Sixth Amended and Restated Trust Agreement (the “Amended Trust Agreement”) reflecting the changes necessary to allow the Trust to commence staking activities. Among other things, the Amended Trust Agreement authorizes the Trust to participate, directly or indirectly, in the proof-of-stake validation protocols of the applicable Index Constituent networks, and creates a separate class of unlisted shares designated as the Sponsor Share, held exclusively by the Sponsor, which entitles the Sponsor to an allocation of Net Staking Income generated by the Trust’s staking activities.
Under the Amended Trust Agreement, after the staking services provider retains its portion of any staking income, the remaining Net Staking Income is allocated as follows: (i)
The Trust expects to commence staking activities promptly following the effectiveness of these agreements, subject to operational readiness. Staking activities are expected to be conducted through Coinbase Cloud Pte. Ltd., as the Trust’s initial staking services provider. A description of the Trust’s staking program, including the Sponsor Share, the allocation of staking income, the Trust’s liquidity risk policies and procedures, and the associated risk factors, is set forth in Prospectus Supplement No. 1, dated July 23, 2026, filed pursuant to Rule 424(b)(3). These agreements were entered into subsequent to June 30, 2026 and had no effect on the financial statements as of and for the period ended June 30, 2026.
F-13
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
This Quarterly Report on Form 10-Q (this “Report”) includes “forward-looking statements” which generally relate to future events or future performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or the negative of these terms or other comparable terminology. All statements (other than statements of historical fact) included in this Report that address activities, events or developments that will or may occur in the future, including such matters as movements in the commodities markets and indexes that track such movements, our operations, Hashdex Asset Management Ltd.’s (the “Sponsor”) plans and references to our future success and other similar matters, are forward-looking statements. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses our Sponsor has made based on its perception of historical trends, current conditions and expected future developments, as well as other factors appropriate in the circumstances. Whether or not actual results and developments will conform to our Sponsor’s expectations and predictions, however, is subject to a number of risks and uncertainties, including the special considerations discussed in this Report, general economic, market and business conditions, changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies, and other world economic and political developments. Consequently, all the forward-looking statements made in this Report are qualified by these cautionary statements, and there can be no assurance that actual results or developments our Sponsor anticipates will be realized or, even if substantially realized, that they will result in the expected consequences to, or have the expected effects on, our operations or the value of our shares.
Readers are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them. Except as may be required by law, we do not undertake any obligation to update the forward-looking statements contained in this Report to reflect any new information or future events or circumstances or otherwise.
Trust Overview
Hashdex Nasdaq CME Crypto Index ETF (f/k/a Hashdex Nasdaq Crypto Index US ETF, prior to January 20, 2026) (the “Trust”) is a Delaware statutory trust organized on July 12, 2024. The Trust operates pursuant to the Fifth Amended and Restated Trust Agreement, dated January 20, 2026. The Trust issues shares of beneficial interest (“Shares”), representing fractional undivided beneficial interests in the Trust. The Shares trade on The Nasdaq Stock Market, LLC (the “Exchange”) under the symbol “NCIQ”. The principal office address of the Trust is 19 West 44th Street, Suite 200, New York, NY 10036 and the Trust’s telephone number is 800-927-9800.
The Trust is designed to provide investors with price exposure to certain crypto assets. Prior to January 20, 2026, such crypto assets were those included in the Nasdaq Crypto US Settlement Price™ Index (the “NCIUSS” or the “Former Index”). Effective January 20, 2026 (the “Transition Date”), the reference index changed to the Nasdaq CME Crypto Settlement Price Index™ (the “NCIS” or the “New Index”), as detailed below. References to the “Index” as used herein refer to the Former Index prior to the Transition Date and the New Index after the Transition Date. The NCIUSS represents the daily closing value of the Nasdaq Crypto US™ Index (the “NCIUS”), and the NCIS represents the daily closing value of the Nasdaq CME Crypto™ Index (the “NCI”). The NCIUSS and the NCIS apply substantially identical methodologies, reflect the same constituents, and are both designed to measure the performance of a material portion of the overall crypto asset market.
The Trust’s investment objective is to align the daily changes in the net asset value (“NAV”) of the Shares with the daily price changes of the Index, minus operational expenses and liabilities, by investing in the digital assets that are constituents of the Index or may be added as constituents of the Index in the future (the “Index Constituents”). Because the Trust’s investment objective is to track the price of the Index, changes in the price of the Shares may vary from changes in prices of the Index Constituents.
The sponsor of the Trust is Hashdex Asset Management Ltd. (the “Sponsor”). CSC Delaware Trust Company is the trustee of the Trust (the “Trustee”). U.S. Bancorp Fund Services, LLC (d/b/a U.S. Bank Global Fund Services) (“Global Fund Services” or the “Administrator”) provides administrative services to the Trust. Global Fund Services also serves as the Trust’s transfer agent (the “Transfer Agent”) and accounting agent (“Accounting Agent”). Paralel Distributors LLC is the marketing agent of the Trust (the “Marketing Agent”). Coinbase Custody Trust Company, LLC (“Coinbase Custody”), BitGo Trust Company, Inc. (“BitGo”) and Fidelity Digital Asset Services, LLC (“Fidelity”) are the custodians for the Trust’s crypto asset holdings (the “Crypto Custodians”). U.S. Bank National Association is the custodian for the Trust’s cash and cash equivalent holdings (the “Cash Custodian” and together with the Crypto Custodians, the “Custodians”).
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The Trust is an exchange-traded fund. The Trust does not purchase or sell digital assets other than in connection with the creation and redemption of blocks of 10,000 Shares called “Baskets” to certain broker-dealers that have entered into an agreement with the Sponsor (“Authorized Participants”), or to pay certain expenses.
Recent Developments
Index Change
As discussed above, effective January 20, 2026, the Fund’s reference index changed from the NCIUSS to the NCIS.
Name Change
On January 20, 2026, the Sponsor caused a Certificate of Amendment to the Trust’s Certificate of Trust to be filed with the Secretary of State of the State of Delaware in order to change the name of the Trust from “Hashdex Nasdaq Crypto Index US ETF” to “Hashdex Nasdaq CME Crypto Index ETF”. In addition, on January 20, 2026, the Sponsor and the Trustee entered into the Fifth Amended and Restated Trust Agreement (the “Trust Agreement”). The Trust Agreement made conforming changes to the Fourth Amended and Restated Trust Agreement primarily to reflect the change of the Trust’s name and its reference index.
Management Fee Reduction
On March 13, 2026, the Sponsor and the Trust entered into the Second Amendment to the Sponsor Agreement to reduce the Sponsor’s Management Fee (the “Sponsor Fee”) from 0.50% to 0.25% per annum of the Trust’s net asset value, effective as of March 16, 2026.
Management Changes
On March 5, 2026, Hashdex Ltd. (“Hashdex”), the controlling entity of the Sponsor, announced the following leadership changes at the Hashdex group level:
Marcelo Sampaio, who served as Chief Executive Officer and President of Hashdex, transitioned to the role of Executive Chairman. In his new role, Mr. Sampaio leads Hashdex’s Board of Directors, guides long-term strategy and capital allocation, and oversees major corporate initiatives on a full-time basis.
Bruno Caratori, Co-Founder of Hashdex and Chief Operating Officer, was appointed Global Chief Executive Officer. As Global CEO, Mr. Caratori leads Hashdex’s worldwide strategy, operations, and growth initiatives.
Mick McLaughlin was appointed U.S. Chief Executive Officer. Mr. McLaughlin continues to serve as Global Head of Distribution.
Investment Objective and Strategy
The Shares are designed to provide investors with a straightforward means of obtaining price exposure to the Index Constituents, as opposed to direct acquisition, holding, and trading of crypto assets on a peer-to-peer or other basis or via a crypto asset platform. The Shares are intended to reduce the complexities and operational burdens associated with direct investment in these crypto assets, while maintaining an intrinsic value that reflects the investment exposure to the assets held by the Trust, less the Trust’s expenses and liabilities. This structure offers investors an alternative method of accessing the crypto asset markets through the public securities market.
The Sponsor will employ a passive investment strategy intended to track the changes in the Index, regardless of its direction, meaning that the Sponsor will not attempt to outperform the Index. This strategy aims to allow investors to buy and sell Shares to hedge against losses in Index-related transactions or to gain price exposure to the Index. Consistent with its investment objective, the Trust will not use its investments to enhance leverage or seek performance that is the multiple or inverse multiple of the Index.
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The Trust will gain exposure to the prices of the Index Constituents by purchasing these crypto assets and will maintain cash balances as necessary to cover currently due Trust-payable expenses. Absent any Share redemption orders or currently due Trust-payable expenses, the Trust’s portfolio will consist solely of Index Constituents. The Trust will not invest in any crypto assets other than the Index Constituents. The Trust will not invest in tokenized assets, or stablecoins.
As of June 30, 2026, the crypto asset constituents of the Index Constituents and their weightings were as follows:
| Constituents | Weight | |||
| Bitcoin | 78.22 | % | ||
| Ether | 11.75 | % | ||
| XRP | 5.34 | % | ||
| Solana | 3.18 | % | ||
| Cardano | 0.49 | % | ||
| Chainlink | 0.39 | % | ||
| Stellar | 0.38 | % | ||
| Bitcoin Cash | 0.25 | % | ||
The Trust’s Index
The Trust will use the Index as a reference to track and measure its performance compared to the price performance of the markets for the Index Constituents and for valuation purposes when calculating the Trust’s NAV.
Prior to the Transition Date, the Trust used the Nasdaq Crypto US Settlement Price™ Index. Effective as of the Transition Date, the reference index changed to the Nasdaq CME Crypto Settlement Price Index™. References to the “Index” as used herein refer to the Former Index prior to the Transition Date and the New Index after the Transition Date. The Former Index and the New Index apply substantially identical methodologies, reflect the same Index Constituents, and are both designed to measure the performance of a material portion of the overall crypto asset market.
The Index does not track the overall performance of all crypto assets generally, nor the performance of any specific crypto assets. The Index is owned and administered by Nasdaq, Inc. (the “Index Provider”) and is calculated by CF Benchmarks Limited (the “Calculation Agent”), which is experienced in calculating and administering crypto asset indices. The Calculation Agent publishes daily a list of the Index Constituents, the Index Constituents’ weightings, the intraday value of the Index, and the daily settlement value of the Index, which is effectively the Index’s closing value.
The Index is derived from a rules-based methodology (the “Index Rules”), which is overseen by the Nasdaq Index Management Committee (the “NIMC”). The NIMC governs the Index and is responsible for its implementation, administration, and general oversight, including assessing crypto assets for eligibility, adjustments to account for regulatory changes and periodic methodology reviews. The NIMC shall approve any material changes to the methodology and review the Index methodology at least on an annual basis. The Index Rules may only be changed by the Index Provider with the approval of the NIMC. Neither the Trust nor the Sponsor have control over the Index Rules or the Index administration. Changes to Index Rules may result in adverse effects to the Trust and/or in the ability of the Sponsor to implement the Trust’s investment strategy.
Crypto assets are eligible for inclusion in the Index if they satisfy the criteria set forth under the Index methodology. The Index adjusts its constituents and weightings on a quarterly basis to reflect changes in the crypto asset markets. Notwithstanding inclusion in the eligible list, the NIMC reserves the right to further exclude any additional assets based on one or more factors, including but not limited to, its review of general reputation, fraud, manipulation, or security concerns connected to the asset. The Index will not include assets deemed to be securities by U.S. regulators. Assets that, in the sole discretion of the NIMC, do not offer utility, do not facilitate novel use cases, or that do not exhibit technical, structural or crypto-economic innovation (e.g., assets inspired by memes or internet jokes) may also be excluded. The Index methodology has been written and designed to be forward-looking to account for any potential future regulatory changes, including potential changes where crypto asset trading platforms would be regulated by U.S. regulators such as the U.S. Securities and Exchange Commission.
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The Index will be reconstituted and rebalanced quarterly, on the first Business Day in March, June, September and December (the “Reconstitution Date”). A “Business Day” means any day other than a day when the Exchange is closed for regular trading.
Principal Market and Fair Value Determination of Assets
The Trust’s NAV per Share will be calculated by taking the current market value of the Trust’s total assets, subtracting any liabilities, and dividing that total by the number of Shares. The assets of the Trust will consist of crypto assets, cash and cash equivalents. The Sponsor has the exclusive authority to determine the Trust’s NAV, which it has delegated to the Administrator.
The Administrator of the Trust will calculate the NAV once each Business Day, as of the earlier of the close of the Exchange or 4:00 p.m. Eastern Time (“E.T.”).
In determining the value of the Trust’s holdings, the Administrator will value the Index Constituents held by the Trust based on the Index Constituents’ settlement prices, unless the prices are not available or the Administrator, in its sole discretion, determines that the Index Constituents’ settlement prices are unreliable (“Fair Value Event”).
In the instance of a Fair Value Event, the Trust’s holdings may be fair valued on a temporary basis in accordance with the fair value policies approved by the Administrator. In the instance of a Fair Value Event and pursuant to the Administrator’s fair valuation policies and procedures, volume weighted average prices (VWAP) or volume weighted median prices (VWMP) from another index administrator (“Secondary Index”) will be utilized.
If a Secondary Index is also not available or the Administrator in its sole discretion determines the Secondary Index is unreliable, the price set by the Trust’s principal market as of 4:00 p.m. E.T., on the valuation date will be utilized. In the event the principal market price is not available or the Administrator in its sole discretion determines the principal market valuation is unreliable, the Administrator will use its best judgment to determine a good faith estimate of fair value. The Administrator identifies and determines the Trust’s principal market (or in the absence of a principal market, the most advantageous market) for crypto assets consistent with the application of the fair value measurement framework in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820-10. The principal market is the market where the reporting entity would normally enter into a transaction to sell the asset or transfer the liability. The principal market must be available to and be accessible by the reporting entity. The reporting entity is the Trust.
A Fair Value Event value determination will be based upon all available factors that the Sponsor or the Administrator deems relevant at the time of the determination and may be based on analytical values determined by the Sponsor or Administrator using third party valuation models. Fair value policies approved by the Administrator will seek to determine the fair value price that the Trust might reasonably expect to receive from the current sale of that asset or liability in an arm’s-length transaction on the date on which the asset or liability is being valued consistent with “Relevant Transactions”. A “Relevant Transaction” is any crypto asset versus U.S. dollar spot trade that occurs during the observation window between 3:00 p.m. and 4:00 p.m. E.T. on a Core Crypto Platform in the bitcoin/U.S. dollar pair that is reported and disseminated by a Core Crypto Platform through its publicly available application programming interface and observed by the Index Provider. A “Core Crypto Platform” is a crypto asset platform that, in the opinion of the Index, exhibits at a minimum the following characteristics: (1) has strong forking controls; (2) has effective anti-money laundering controls; (3) has a reliable and transparent application programming interface (API) that provides real-time and historical trading data; (4) charges fees for trading and structure trading incentives that do not interfere with the forces of supply and demand; (5) is licensed by a public independent governing body; (6) includes surveillance for manipulative trading practices and erroneous transactions; (7) evidences a robust information technology infrastructure; (8) demonstrates active capacity management; (9) evidences cooperation with regulators and law enforcement; (10) has a minimum market representation for trading volume; and (11) maintains a comprehensive Information Sharing Agreement with the Chicago Mercantile Exchange.
5
Indicative Trust Value
In order to provide updated information relating to the Trust for use by shareholders and market professionals, the Sponsor will engage an independent calculator to calculate an updated Indicative Trust Value (“ITV”). The ITV will be calculated by using the prior day’s closing NAV per Share of the Trust as a base and will be updated throughout the regular market session of 9:30 a.m. E.T. to 4:00 p.m. E.T. (the “Regular Market Session”) to reflect changes in the value of the Trust’s holdings during the trading day. For purposes of calculating the ITV, the Trust’s crypto asset holdings will be priced using a real time version of the Index.
Results of Operations
The discussion below addresses material changes in the results of operations for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 and the six months ended June 30, 2026 compared to the period from February 14, 2025 to June 30, 2025. The Trust commenced operations on February 14, 2025 and no operations occurred prior to this date.
On June 30, 2026, the Trust held 8 Index Constituents with an asset fair value of $189,911,546 and cash of $189,347.
Period Ended June 30, | Period Ended June 30, | Year Ended December 31, | ||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| Total Net Assets | $ | 190,069,351 | $ | 125,608,529 | $ | 121,287,477 | ||||||
| Shares Outstanding | $ | 13,040,000 | $ | 4,590,000 | 5,340,000 | |||||||
| Net Asset Value per share | $ | 14.58 | $ | 27.37 | $ | 22.71 | ||||||
| Closing Price | $ | 14.61 | $ | 27.43 | $ | 22.73 | ||||||
The Trust’s net assets increased from $125,608,529 as of June 30, 2025 to $190,069,351 as of June 30, 2026. This change was driven primarily by net capital inflows from the creation of Shares, partially offset by the net decrease in net assets resulting from operations during the period.
For the three months ended June 30, 2026, compared to the three months ended June 30, 2025:
| Three Months Ended | Three Months Ended | |||||||
| June 30, 2026 | June 30, 2025 | |||||||
| Average daily total net assets | $ | 123,868,539 | $ | 108,653,781 | ||||
| Net realized and unrealized gain (loss) on Index Constituents | $ | (23,828,927 | ) | $ | 27,945,817 | |||
| Interest income earned on cash equivalents | $ | — | $ | — | ||||
| Net income (loss) | $ | (23,906,132 | ) | $ | 27,878,414 | |||
| Weighted average Shares outstanding | 7,088,022 | 4,347,363 | ||||||
| Management Fees | $ | 77,205 | $ | 134,806 | ||||
| Total fees and other expenses (excluding Management Fees) | $ | — | $ | — | ||||
| Brokerage commissions | $ | — | $ | — | ||||
| Total gross expense ratio | 0.25 | % | 0.50 | % | ||||
| Total expense ratio | 0.25 | % | 0.25 | % | ||||
| Net investment income | (0.25 | )% | (0.25 | )% | ||||
| Creation of Shares | 7,350,000 | 340,000 | ||||||
| Redemption of Shares | — | — | ||||||
6
For the six months ended June 30, 2026, compared to the period from February 14, 2025 (commencement of operations) to June 30, 2025:
| Six Months Ended | Period from February 14, 2025 to | |||||||
| June 30, 2026 | June 30, 2025^ | |||||||
| Average daily total net assets | $ | 115,745,675 | $ | 85,399,513 | ||||
| Net realized and unrealized gain (loss) on Index Constituents | $ | (53,303,145 | ) | $ | 24,004,431 | |||
| Interest income earned on cash equivalents | $ | — | $ | — | ||||
| Net income (loss) | $ | (53,446,638 | ) | $ | 23,925,350 | |||
| Weighted average Shares outstanding | 6,284,420 | 3,502,044 | ||||||
| Management Fees | $ | 209,780 | $ | 158,063 | ||||
| Total fees and other expenses (excluding Management Fees) | $ | — | $ | 50 | ||||
| Brokerage commissions | $ | — | $ | — | ||||
| Total gross expense ratio | 0.35 | % | 0.50 | % | ||||
| Total expense ratio | 0.25 | % | 0.25 | % | ||||
| Net investment income | (0.25 | )% | (0.25 | )% | ||||
| Creation of Shares | 7,700,000 | 4,640,000 | ||||||
| Redemption of Shares | — | (50,000 | ) | |||||
^ The Trust commenced operations on February 14, 2025 and no operations occurred prior to this date.
The graphs below show the actual Shares outstanding, total net assets and NAV per Share for the Trust from commencement of operations to June 30, 2026 and serve to illustrate the relative changes of these components.
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8
Index Performance
The following graphs illustrate changes in the Trust’s NAV, as reflected by the graphs “Comparison of NAV to Index” for the three months ended June 30, 2026 and 2025 and the six months ended June 30, 2026 and the period from February 14, 2025 to June 30, 2025.
Comparison of NAV to Index
for the Three Months Ended June 30, 2026
Comparison of NAV to Index
for the Six Months Ended June 30, 2026
NEITHER THE PAST PERFORMANCE OF THE TRUST NOR THE PRIOR INDEX LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE TRUST’S FUTURE PERFORMANCE.
The graphs above compare the return of the Trust with the Index returns for the three months ended June 30, 2026 and the six months ended June 30, 2026. The difference in the NAV price and the Index value often results in the appearance of a NAV premium or discount to the Index. Differences in the Index and the Trust’s NAV per Share are due to such factors as the Trust’s operating expenses and transaction costs associated with portfolio rebalancing and cash creation and redemption activities.
9
Comparison of NAV to Index
for the Three Months Ended June 30, 2025
Comparison of NAV to Index
for the Period from February 14, 2025 to June 30, 2025^
^ The Trust commenced operations on February 14, 2025 and no operations occurred prior to this date.
NEITHER THE PAST PERFORMANCE OF THE TRUST NOR THE PRIOR INDEX LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE TRUST’S FUTURE PERFORMANCE.
10
The graphs above compare the return of the Trust with the Index returns for the three months ended June 30, 2025 and the period from February 14, 2025 to June 30, 2025. The difference in the NAV price and the Index value often results in the appearance of a NAV premium or discount to the Index. Differences in the Index and the Trust’s NAV per Share are due to such factors as the Trust’s operating expenses and transaction costs associated with portfolio rebalancing and cash creation and redemption activities.
Frequency Distribution of Premiums and Discounts
The frequency distribution chart below presents information about the difference between the daily market price for Shares of the Trust and the Trust’s reported NAV per Share. The amount that the Trust’s market price is above the reported NAV is called the premium. The amount that the Trust’s market price is below the reported NAV is called the discount. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Trust’s NAV is calculated (usually 4:00 p.m. E.T.). The chart shows the number of trading days in which the Trust traded within the premium/discount range indicated.
NEITHER THE PAST PERFORMANCE OF THE TRUST NOR THE PRIOR INDEX LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE TRUST’S FUTURE PERFORMANCE.
| Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | |||||||||||||
| Days at premium | 19 | 21 | 37 | 29 | ||||||||||||
| Days at NAV | 4 | 7 | 6 | 10 | ||||||||||||
| Days at discount | 41 | 36 | 12 | 23 | ||||||||||||
The performance data above for the Trust represents past performance. Past performance is not a guarantee of future results. Investment return and value of the Trust’s Shares will fluctuate so that an investor’s Shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted.
Liquidity and Capital Resources
The Trust is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to its liquidity needs. In exchange for a fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust during the period covered by this Quarterly Report on Form 10-Q (the “Report”) was the Sponsor’s Management Fee. The Trust’s only source of liquidity is its transfers and sales of Index Constituents.
Only an Authorized Participant may engage in creation or redemption transactions directly with the Trust. The Trust has a limited number of institutions that act as Authorized Participants. To the extent that these institutions exit the business or are unable to proceed with creation and/or redemption orders with respect to the Trust and no other Authorized Participant is able to step forward to create or redeem creation units, Shares may trade at a discount to NAV and possibly face trading halts and/or delisting. In addition, a decision by a market maker, lead market maker, or other large investor to cease activities for the Trust or a decision by a secondary market purchaser to sell a significant number of the Trust’s Shares could adversely affect liquidity, the spread between the bid and ask quotes, and potentially the price of the Shares. The Sponsor can make no guarantees that participation by Authorized Participants or market makers will continue.
A market disruption, such as a government taking regulatory or other actions that disrupt the market in Index Constituents, can also make it difficult to liquidate a position. Unexpected market illiquidity may cause major losses to investors at any time or from time to time. In addition, the Trust does not intend at this time to establish a credit facility, which would provide an additional source of liquidity, but instead will rely only on the cash and cash equivalents that it holds to meet its liquidity needs.
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Critical Accounting Estimates
In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), management makes estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the amount of revenue and expenses reported during the period. Actual results could differ from these estimates. In addition, please refer to Note 2 to the Financial Statements included in this Report for further discussion of the Trust’s accounting policies.
Off-Balance Sheet Arrangements
The Trust has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Trust’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that are material to investors.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Not applicable to smaller reporting companies.
Item 4. Controls and Procedures
Under the supervision and with the participation of the management of the Sponsor, including its Principal Executive Officer and Principal Financial Officer, the Trust conducted an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of June 30, 2026. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer concluded that the Trust’s disclosure controls and procedures were effective as of June 30, 2026 to provide reasonable assurance that information required to be disclosed by the Trust in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management to allow timely decisions regarding required disclosure.
There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures.
Changes in Internal Control over Financial Reporting
There were no changes in the Trust’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the three months ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, the Trust’s internal control over financial reporting.
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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, the Trust may be a party to certain legal proceedings in the ordinary course of business. As of June 30, 2026, the Trust was not subject to any material legal proceedings, nor, to our knowledge, are any material legal proceedings threatened against the Trust or the Sponsor.
Item 1A. Risk Factors
Not applicable to smaller reporting companies.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
| (a) | None. |
| (b) | Not applicable. |
| (c) | The Trust does not purchase Shares directly from its Shareholders. In connection with its redemption of Baskets held by Authorized Participants, the Trust redeemed 0 Baskets (comprising 0 Shares) during the three months ended June 30, 2026. The following table summarizes the redemptions of Shares by Authorized Participants during the period: |
| Period | Total Shares Redeemed | Average Price Per Share Redeemed | ||||||
| April 1, 2026 – April 30, 2026 | 0 | $ | 0 | |||||
| May 1, 2026 – May 31, 2026 | 0 | $ | 0 | |||||
| June 1, 2026 – June 30, 2026 | 0 | $ | 0 | |||||
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not Applicable.
Item 5. Other Information
No officers or directors of the Sponsor have
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Item 6. Exhibits
The following exhibits are filed as part of this Report as required under Item 601 of Regulation S-K:
| Exhibit Number |
Exhibit Description | |
| 31.1* | Rule 13(a)-14(a)/15(d)-14(a) Certification of Principal Executive Officer | |
| 31.2* | Rule 13(a)-14(a)/15(d)-14(a) Certification of Principal Financial and Accounting Officer | |
| 32.1** | Section 1350 Certification of Principal Executive Officer | |
| 32.2** | Section 1350 Certification of Principal Financial and Accounting Officer | |
| 101.INS* | Inline XBRL Instance Document | |
| 101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |
| 101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
| 101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
| 101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
| 101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
| 104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
| * | Filed herewith. |
| ** | Furnished herewith. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
HASHDEX NASDAQ CME CRYPTO INDEX ETF (Registrant)
| By: | Hashdex Asset Management, Ltd. | |
| its Sponsor |
| Signature | Title (Capacity) | Date | ||
| /s/ Bruno Sousa | Director of the Sponsor | August 12, 2026 | ||
| Bruno Sousa | (Principal Executive Officer) | |||
| /s/ Samir Kerbage | Director of the Sponsor | August 12, 2026 | ||
| Samir Kerbage | (Principal Financial Officer) |
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