Victory Capital Management Inc plans to enter the cryptocurrency market with private placement funds and other vehicles for U.S. investors, the firm announced in a press release Wednesday.

Victory Capital will be offering investment vehicles that track the Nasdaq Crypto Index (NCI), an index that tracks multiple cryptocurrencies and was co-developed by Nasdaq and Hashdex, an asset manager that focuses on crypto.

Sean Wasserman, Vice President, global head of index and advisor solutions at Nasdaq, said in the release: “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.”

Investing through Private funds in the Crypto Markets

The NCI was developed to meet a growing crypto and digital asset demand from institutional investors.

Victory Capital described the rules-based index as “designed to be dynamic in nature, broadly representative of the investable landscape of the cryptocurrency market, and readily trackable by investors.”

The index implements strict eligibility criteria and is rebalanced quarterly.

Victory Capital will also launch private funds that will track the Nasdaq Bitcoin Reference Price Index and the Nasdaq Ethereum Price Index, the release said.

Hashdex, Victory Capital’s partner on the funds, is responsible for having developed the world’s first crypto index funds. Currently, the funds it manages are only available to non-U.S. investors.

“We set out to solve a problem we were having ourselves. We wanted an institutional-grade index strategy that would allow us to own beta in the crypto asset class,” said Marcelo Sampaio, CEO of Hashdex. “We created a dynamic index strategy that enables non-U.S. investors to make allocations to the asset class, rather than trying to pick winners. We are thrilled to partner with Victory Capital and Nasdaq to bring our investment capabilities to the U.S. market in the future.”

Victory Capital ETFs

Victory Capital is a global asset management firm that holds $157.1 billion assets under management. The firm offers investment strategies for individual and institutional investors, intermediaries, and retirement platforms.

Under the VictoryShares brand, Victory Capital offers 22 ETFs ranging from fixed income to thematic investing, from risk-weighted strategies to factor-based investing.

Its largest ETF on the market is the VictoryShares US EQ Income Enhanced Volatility Wtd ETF (CDC), which currently holds $933 million in assets under management.

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