Hashdex staking split: 0.25% sponsor share, 40/60 split

Hashdex disclosed a two-tier allocation for staking income from its Nasdaq CME Crypto Index ETF (NCIQ) in a July 23 prospectus supplement and Form 8-K. The filing named Coinbase Cloud as the initial staking provider and indicated staking was expected to begin promptly, subject to operational readiness.\n\nUnder the framework, staking providers first deduct their fees from gross staking rewards. The remaining net staking income is then allocated to a Sponsor Share held exclusively by Hashdex up to a dollar amount equal to 0.25% of the common-share net asset value (NAV) for the fiscal year, prorated for partial years. Any net staking income above that annual threshold is split 40% to Hashdex and 60% to the trust for the benefit of common shareholders. If net staking income does not exceed the 0.25% threshold for the year, no amount is allocated to the trust.\n\nHashdex used an illustrative example showing how the split would work if net staking income after provider fees reached 1% of common-share NAV over a full year. In that scenario, common shareholders would receive 0.45% of NAV (60% of the 0.75 percentage point above the initial 0.25%), while Hashdex would receive 0.55% (the first 0.25% plus 40% of the remaining 0.75 percentage point). The prospectus described the numbers as illustrative rather than as a forecast.\n\nProvider deductions vary by asset. Hashdex’s product page lists an 8% fee on gross ether staking rewards, an 8% validator commission for Solana and a 5% validator commission for Cardano. As of July 26, Ethereum represented 11.75% of NCIQ holdings, Solana 3.17% and Cardano 0.49%, a combined 15.41% of the fund. Hashdex says it aims to stake between 10% and 20% of total fund NAV. The actual benefit to shareholders will depend on which assets are staked, the share of the fund committed to staking, each network’s reward rates and the size of provider deductions.\n\nThe filing also highlighted operational risks. Unbonding periods can temporarily lock assets, and validator failures or slashing events can reduce rewards. Those factors can complicate redemptions and rebalancing and could widen any difference between NCIQ’s NAV performance and its underlying price index; the filing did not quantify how large any tracking difference could become.\n\nThe Sponsor Share payout is separate from NCIQ’s existing 0.25% annual management fee and will not be netted against that fee. Hashdex will retain the unlisted Sponsor Share class while common shareholders receive the trust’s portion of staking income once the annual threshold is cleared.